A MERSEYSIDE law firm is celebrating after winning a crucial case in front of the Employment Appeal Tribunal.
Beech Jones de Lloyd won the original case last year but challenged the Liverpool Employment Tribunal’s decision not to award their side costs.
They represented Daleside Nursing Home, based in Bebington Road, Birkenhead, after an ex-employee claimed unfair dismissal and racial discrimination. Although the claim was dismissed, Daleside’s application for costs was rejected.
But last week the Employment Appeal Tribunal accepted Beech Jones’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.
Paul Dumbleton, senior partner of Beech Jones de Lloyd, which is based in Wirral, told LDP Legal: “I 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 them.”
The firm says the 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.
The appeal tribunal expressed strong views about the fictitious and fabricated allegations made by the ex-employee following submissions made on Daleside’s behalf.
It said the case should 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.
The case was originally heard in Liverpool in March, 2008.
