How would this play out in Small Claims Court? (Wrongful Dismissal)

A former colleague at my firm was let go in February 2025 and is now suing for wrongful dismissal. In reality, his performance was the weakest on the team. I had trained him (having done his role before) and he consistently refused to do what was required, despite claiming 10+ years of relevant experience. He argued with managers and was eventually given two weeks’ notice pay under Ontario ESA for 1 year and 7.5 months of service.

Management had actually accommodated him more than most: approving immediate bereavement leave and waiving the 3-month wait for benefits coverage. Later, he grew close to a junior colleague (related to someone in management) and would often pressure them for confidential information (screenshots from junior colleague's phone confirm it). After his dismissal, I was temporarily placed in his department and uncovered multiple errors and deliberate sabotage. He then filed a lawsuit demanding $10k and a glowing reference letter.

The case has badly affected the junior colleague, who had to take mental health leave after being dragged into lawyer and management meetings. His main claim rests on alleged comments that he was only a “temporary replacement” for someone on maternity leave, which the junior colleague denies. Meanwhile, management’s decisions are made collectively and in the company’s best interest. The whole situation has left the junior colleague different (anxious, panicked, depressed, scared etc.), and they are likely planning to leave by year’s end. How would this play out in Small Claims Court?