‘Egregious’: Ontario court includes $250,000 for aggravated and punitive damages
The Ontario Superior Court of Justice has ordered Sigma Lithium Corporation to pay former executive Jamie Flegg more than $2.4 million after finding the company breached its contractual obligations and constructively dismissed him from his role.
Justice Andra Pollak wrote that the plaintiff was legally entitled to damages in the amount of $1,898,350 for breach of contract after the employer failed “to deliver the shares he was entitled to pursuant to his contract of employment.”
The $1.9 million is the amount that Fleming “would have realized on the sale of the shares he was entitled to, if he had received them when he was contractually to,” said the May 1, 2026 decision.
Pollak notes that the amount reflects Flegg’s intention at the time to sell the shares on the date that he advised the employer that he wanted to exercise his right to sell those shares.
Trial proceeds uncontested
Sigma did not take part in the hearing, according to the decision, or make any submissions at the trial. As a result, the trial proceeded on an uncontested basis.
Based on the evidence before the court, Pollak concluded that Flegg met his burden of proof and was legally entitled to damages in the amount of $1,898,350 for breach of contract.
Before his departure from Sigma Lithium, Flegg served at the company as chief development officer from March 2022 to February 2024 in a full-time contract role based in Toronto, according to LinkedIn.
Constructive dismissal found
The court also found that Flegg was constructively dismissed, based on his evidence “with respect to the unilateral modifications of his duties, which were designed to marginalize his role in the company.”
“The evidence is that there was an effort to replace him by hiring another employee, (his replacement), which he was required to report to.”
Pollak applied the Bardal factors to assess reasonable notice. These include character of employment, length of service, age and availability of comparable employment.
“I find that an estimate of the reasonable amount of time it would take for him to obtain alternate employment is consistent with the amount of time he has claimed as a reasonable estimate of the notice he should have received,” said Pollak. “He is entitled to damages in lieu of such notice.”
Aggravated and punitive damages awarded
At trial, Flegg sought six months’ compensation for constructive dismissal in the amount of $100,000, and Pollak called it “a reasonable estimation” in awarding the sum as damages for failure to provide reasonable notice termination of employment.
The court also imposed a significant aggravated and punitive damages award. Pollak cited the company “egregious conduct” in refusing to honour its obligations pursuant to the employer agreement and its constructive dismissal.
“I award damages of $250,000 for aggravated and punitive damages.”
In addition, the court ordered interest and substantial indemnity costs as a result of the “unacceptable conduct” of Sigma Lithium in the litigation: “The court awards the amount of $234,000 for costs of this action on a substantial indemnity basis.”
Flegg’s LinkedIn profile shows he has since moved into senior roles with other mining companies. He is listed as vice-president of corporate development at G Mining Ventures Corp. in Toronto in a permanent full-time role since September 2025, and as a director with Comet Lithium Corp. in a permanent full-time capacity since May 2024.
