Thessalon First Nation alleges that an ousted executive director engaged in serious misconduct and abused their authority when they reworked their own employment contract to score a lucrative cash windfall upon termination.
That’s according to a statement of defence recently filed by Toronto-based law firm Kastner Ko LLP in response to a $477,713 civil suit launched earlier this year by Lesley Boulrice.
Boulrice claims she did not receive monies owing to her after being wrongfully dismissed by the First Nation in October 2024.
The allegations made by both parties have yet to be tested in court.
In the 13-page statement of defence, legal counsel for Thessalon First Nation allege that Boulrice “unlawfully exercised her significant authority,” while employed as executive director — all in an effort to “improperly enrich herself and her family, while neglecting her fundamental responsibilities to the community.”
Thessalon First Nation is a small, Anishinaabe community located approximately 100 km east of Sault Ste. Marie. There are roughly 1,100 registered members of the First Nation, with 113 of its members living on reserve as of February 2025.
While the fired executive director claims she is owed for 49 months remaining on her contract and an additional year’s wages for being terminated without cause, Thessalon First Nation contends Boulrice exploited Chief Joseph Wabigwan by manipulating him into signing a new employment agreement “during a period when he was ill and confined to bed rest” last year.
“This agreement purportedly granted Ms. Boulrice excessive and unjustifiable severance benefits amounting to hundreds of thousands of dollars, executed in breach of her fiduciary duties and without valid consideration,” according to the statement of defence.
It’s also alleged that Boulrice “surreptitiously and without authority attempted to impose new employment agreements on Thessalon First Nation benefitting herself,” on two separate occasions in the months leading up to her dismissal.
“These ostensible new employment agreements are unenforceable as they were prepared in breach of Ms. Boulrice’s duties to the First Nation, are in breach of conflict-of-interest requirements, contain grossly unreasonable severance entitlements, and were never authorized by the chief and a quorum of council,” the court documents said.
The First Nation claims it has “after-acquired cause” for Boulrice’s termination — a term used to describe misconduct that has been discovered by an employer after an employee’s dismissal — given the “seriousness and totality" of her misconduct.
The allegations of misconduct include the former executive director allegedly hiring a close relative without drafting a job description, proposing a budget for the position, and failing to obtain the approval of chief and council.
It’s also alleged that Boulrice retained legal counsel on behalf of the First Nation without authorization from leadership, and that Thessalon was unaware a lawyer had been retained until it received an invoice for “exorbitant and unnecessary costs.”
The First Nation claims that Boulrice also amended the termination clause in her employment agreement to provide a payout for the remainder of the contract, along with “additional compensation equivalent to one year of service for emotional stress,” if she were to be fired without cause.
It’s alleged she then attended the chief’s home, while he was ill and confined to bed rest, and asked him to sign the revised contract.
“Despite providing his signature, the chief was in a state of limited capacity and did not understand the nature of the document,” said the statement of defence.
The First Nation claims the former director attended the chief’s home in the following days, asking Wabigwan to sign a newly-revised contract each time.
“In general, Ms. Boulrice’s successive revisions of her own contract contained more and more lucrative severance entitlements,” the court documents said.
Thessalon First Nation also claims the former director falsely dated the contract for months before the actual revisions in order to not “raise suspicions.”
Legal counsel for the First Nation is now seeking a dismissal of Boulrice’s claim with costs.
“Ms. Boulrice has already taken more than her fair share and is not owed more,” the statement of defence said.
Aaron Zaltzman, a lawyer with Whitten & Lublin PC who is representing Boulrice, declined to comment on the matter.
“At this stage in the litigation, it would not be appropriate for us to comment on the allegations made in the statement of defence,” Zaltzman said in an email to SooToday on Monday.
Last year, SooToday reported that Boulrice was admonished by Thessalon’s appointed election appeals board for defying the First Nation’s electoral code by withholding election appeals stemming from the November 2023 elections for chief and council.
Two band members also took the First Nation to Federal Court over the breach of the community's electoral code.
Boulrice’s civil suit marks the second time Thessalon First Nation has been sued by a former director.
Former director of operations Mary Jane Wardell launched a civil suit against the Anishinaabe community last year, seeking $850,000 in damages for wrongful termination amid claims that she was kicked to the curb for allegedly “failing to be in line with the directive” of new leadership following the 2023 band elections.