Paul had served as president of the alliance since its formation in 1996 when he was suspended by the board of directors last month.
The board cited "irregularities" in Paul's use of the alliance Visa card and company pickup truck. They also faulted him for hiring a worker who was receiving payments from the WCB.
Paul vehemently denies the charges.
"These are all petty accusations," he said. "It just goes to show the immaturity of the board members."
Paul said he plans to take the current alliance board to court.
"I'm initiating court action because my dismissal was illegal," he said.
He said the alliance constitution requires 14 days notice for the suspension but the board passed a motion to suspend Paul at a meeting on Dec. 1 without warning.
He said negotiations with the board recently fell apart.
"We spent three weeks negotiating but it was just their stalling tactic," he said. "Now I'll see them in court. They're going to lose what little credibility they have left."
He said the board wouldn't consider reinstating him until it had completed an internal audit.
"The audit was supposed to be done last month and it's not even half done."
Alliance board member Irene LeMouel refused to comment on the matter.
"I'm not at liberty to talk about that," she said, and directed questions to acting alliance president, Bob Turner.
He is also running for president, but did not return calls.
Paul said his use of the credit card and truck was legitimate. He said he discovered that an employee was on WCB benefits and immediately confronted him.