Court Cost Victory for Local Nursing Home

A client of local solicitors, Beech Jones de Lloyd, is celebrating an important legal decision in a case brought before the Employment Appeal Tribunal a decision that is important and will prove helpful for all Employers.

The Employment Appeal Tribunal in London accepted Beech Jones de Lloyd's argument that where a claim has been brought on a wholly fabricated allegation, it cannot be said to be 'reasonable' for the claimant to bring a claim - and they should be ordered to pay the costs.

In employment cases, the question of whether or not costs should be awarded against a claimant is always discretionary. The Appeal Tribunal's decision is important because it makes it clear that where a claimant lies about the basis of their case, a local Employment Tribunal should exercise its discretion to award costs in favour of the Employer.

It is to be hoped that this will discourage false claims being brought by disgruntled employees.

Wirral based, Beech Jones de Lloyd were acting on behalf of Daleside Nursing Home Ltd who were being sued by an ex employee for alleged constructive unfair dismissal and race discrimination.

The case came for hearing before the Employment Tribunal in Liverpool in March 2008. Dalesideís former employee accused the manager of Daleside Nursing Home of race discrimination towards her, including the use of racist language. The allegation was very serious and legally difficult to disprove. After consideration by the Tribunal her case was rejected.

Beech Jones de Lloyd applied to the Tribunal for the ex employee to pay the legal costs of their client, Daleside Nursing Home Ltd on the grounds that this was an unreasonable and fabricated claim.

The Chairman of the Liverpool Employment Tribunal dismissed the claim for costs made by Beech Jones de Lloyd on behalf of Daleside. However Beech Jones de Lloyd and Daleside were not prepared to leave matters there and appealed against the tribunalís decision on the question of costs.

The Employment Appeal Tribunal in London, eventually overturned the tribunalís decision. It is highly unusual for an appeal to be brought against the refusal to award costs and even more unusual for such an appeal to be successful.

The Employment Appeal Tribunal expressed strong views about the fictitious and fabricated allegations made by the ex employee following submissions made upon Dalesideís behalf.

The Employment Appeal Tribunal in London directed the case to be referred back to the Employment Tribunal in Liverpool to determine how much of the legal costs should be awarded in favour of Daleside Nursing Home Ltd.

Paul Dumbleton, senior partner of Beech Jones de Lloyd said, ëI am delighted with the outcome of this case. Although I am not an employment lawyer, it was obvious to me that if costs were not awarded in a case brought upon fabricated allegations then they would never be awarded! I felt very strongly that the issue should be properly aired and adjudicated upon by the Employment Appeal Tribunal. I came up with the argument and my partner Stephen Nettle (who is an employment lawyer) and Peter Prescott QC delivered the goods.

There are very few reported cases involving legal cost issues in situations such as this and it is very rare indeed for the Employment Appeal Tribunal to intervene. This is a monumental result and a case which can and will be referred to by many other employers when similar cases are brought against themí.