Former Irving Oil president Mayank (Mike) Ashar has filed a blistering breach of contract lawsuit against the company, claiming he was pushed from his job in 2013 by a "poisoned work environment," spied on after he left and then cheated out of millions of dollars in incentive pay.

Former Irving Oil president Mike Ashar is claiming more the $50 million in damages from the company in a lawsuit. (CBC) "If the equity value of Irving Oil on December 31, 2013 had been calculated correctly, fairly, reasonably and without the objective of minimizing the value of Irving Oil, Mr Ashar's Value Appreciation Rights (incentive pay) would have been worth at least $50 million," reads the statement of claim, which is filed with the Court of Queen's Bench in Saint John. "Accordingly, Mr. Ashar claims damages for breach of contract of $50 million."

Ashar has also claimed $200,000 in punitive damages and a further $50,000 for "invasion of privacy."

He says Irving Oil kept his company email account active for eight months after he left and read all incoming messages addressed to him without allowing him to do the same. Ashar`s lawsuit calls that an "exceptional invasion of his privacy and "highhanded and vindictive behaviour."

None of the allegations have been proven in court.

The lawsuit, drawn up by Toronto lawyer Richard Nixon with the firm Davis LLP, contradicts a lot of what was been said publicly about the split.

Ashar had previously claimed to have left Irving Oil on his own terms in April 2013 after a little more than five years with the company. In interviews at the time, Ashar said leaving was something he wanted to do and had told the Irving family from the beginning his intention was to serve only between three and five years.

"I wanted to leave a bit early, rather than a bit late. It forces a sense of closure when you and the organization know it is a finite time," he told the Globe and Mail a month after his departure.

But in the lawsuit, lawyers for Ashar allege a much nastier parting, saying although he was scheduled to leave the company at the end of 2013, he was effectively dismissed months before that date after unnamed members of the Irving family made his work life unbearable.

During 2012 and the first few months of 2013 there were many instances of misconduct and inappropriate behaviour involving members of the Irving family that created an intolerable and poisoned work environment for Mr. Ashar. - Statement of claim in Ashar lawsuit

"During 2012 and the first few months of 2013 there were many instances of misconduct and inappropriate behaviour involving members of the Irving family that created an intolerable and poisoned work environment for Mr. Ashar," states the claim.

"Mr. Ashar informed Irving Oil in early 2013 that he would be prepared to leave Irving Oil earlier than his scheduled departure date of December 31, 2013, on mutually agreeable terms."

Ashar's lawyers say he and Irving Oil agreed he would stop coming to work in April although he would remain on the payroll until the end of December. However, bigger problems developed when Irving Oil informed Ashar that the company had lost value during his leadership, nullifying significant bonus payments in his employment contract.

Ashar alleges company's value 'understated'

According to the lawsuit, Ashar was entitled to share in any appreciation in the value of Irving Oil between July 14, 2008 and December 31, 2013 as part of his long-term incentive package. The bonus was to be paid by the end of June 2014, but a payment never arrived and in July Irving Oil informed Ashar that an evaluation by Deloitte showed there had been no improvement during his term.

"Mr. Ashar was shocked, upset and deeply disappointed when he realized the equity value of Irving Oil on December 31, 2013 had been so grossly understated," says the statement of claim which alleges the Deloitte evaluation was "prepared with the objective of minimizing the equity value of Irving Oil," and was not an arms-length exercise.

Mr. Ashar was shocked, upset and deeply disappointed when he realized the equity value of Irving Oil on December 31, 2013 had been so grossly understated. - Statement of claim in Ashar lawsuit

"The Executive Director of Irving Oil was at all material times a senior partner of Deloitte," states the claim which maintains a proper evaluation would show significant growth in the value of Irving Oil under Ashar's direction, requiring the bonus payment of $50 million.

Ashar had been a long time and successful executive with Suncor Energy in Alberta, before coming to Irving Oil. In 2006 The Globe and Mail listed him as one of the highest paid people in Canada's oil industry with over $11 million in pay and bonuses that year.

Ashar's lawsuit said he had no intention of leaving Suncor, but was heavily recruited by Irving Oil which offered significant incentive pay if he helped the company succeed.

Ashar's lawyers say he did just that, quietly persuading TransCanada Pipeline to embrace the idea of the Energy East pipeline and setting up the delivery of oil by rail to the Irving Oil refinery, both of which they claim added significantly to the value of the company.

Reached in Delhi, where he now runs the oil company Cairn India Ltd., Ashar said he could not talk about the lawsuit.

Irving Oil has filed a notice of intent to defend the lawsuit and late last month also filed a "demand for particulars" asking for more details about Ashar's various claims.

Irving Oil spokeswoman Samantha Robinson said in an emailed statement that the company is confident the lawsuit will not succeed.

"Unfortunately, we have a former employee who is having a disagreement with our company. We will vigorously defend this action as we have treated this employee fairly and respectfully, and we believe that his claim will be ultimately found to be without merit," she said.

"As the matter is now before the courts, we are unable to comment further."