mobile-navigation

0207 118 0950 | info@reculversolicitors.co.uk
Employment Solicitors & Lawyers in London. 'Excellent' on:

Costs Awards in Employment Tribunals

2 August 2013: The Cost of Employment Tribunal Proceedings:

Many employers worry that even if they win in the Employment Tribunal, they cannot normally recover legal costs from the Claimant, putting them in a lose-lose situation.

 

Costs can only be claimed if proceedings are brought or conducted in a vexatious, abusive, disruptive or unreasonable manner, or where they are ‘misconceived’ – ie where there was no reasonable prospect of success.

 

In Sud v London Borough of Ealing (July 2013), the Court of Appeal upheld the decision to order the Claimant to pay half of the Respondent’s costs. In that case the Tribunal ordered LB Ealing to pay compensation of £2,000 for disability discrimination but ordered Ms Sud to pay 50% of the LB Ealing’s costs, which weighed in at over £100,000. The Tribunal took into account the following factors:

 

  • The claim included an unfocused and extensive whistleblowing claim which meant that a “massive” amount of documentation had to be disclosed. (In fact The Tribunal was presented with an eye-watering 11 lever arch files of documents running to 3,600 pages, from which a core bundle of 2 lever arch files was prepared)
  • The claims for race and sex discrimination were only abandoned at the outset of the hearing.
  • Ms Sud brought no evidence to challenge the reason for her dismissal, but the LB Ealing had to deal with wide-ranging allegations relating to her disability and claims that her dismissal was engineered as a result of protected disclosures.
  • It was only accepted that the disability-related discrimination claims were unsustainable in the final submissions.
  • Offers of settlement of up to £40,000 were rejected out of hand, and Ms Sud held out for a settlement of £360,000.

 

The EAT noted that careful attention that been given by the tribunal to Ms Sud’s financial resources, hence the 50% reduction.

 

This decision will encourage many employers. However such awards of costs are still relatively unusual and it may still be difficult to actually recover the costs awarded from an unemployed Claimant with no resources.

 

Funding information

wallet

Is funding representation an issue?

Learn more about funding options


Ask a question

pen

If you have a question and cannot find the answer, put your question through our qualified solicitors

Ask a question


phonebig

0207 118 0950

 

Call me back

    Full Name:

    Company:

    Telephone/mobile:

    Email:

    captcha


    Copyright - Reculver Solicitors
    Reculver Solicitors Ltd (Company No. 6910066)
    1st Floor, 330 High Holborn, London, WC1V 7QT.
    Tel: 0207 118 0950
    Fax: 0207 477 2276
    Email: info@reculversolicitors.co.uk
    Regulated & authorised by the
    Solicitors Regulation Authority
    SRA No.565284
    Website design by Foundry Digital