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Dunedin Canmore Housing Association Ltd v Donaldson - Tribunal perverse not to order costs where claim was brought on completely false basis [2009] EAT

Mrs Donaldson was dismissed by Dunedin. A compromise agreement made with her provided for payment to her of £8,000 and binding her to keep the agreement strictly confidential.

Mrs Donaldson breached this confidentiality and so Dunedin refused to pay her. An employment tribunal rejected her claim that she had not breached confidentiality. It found that she had made two separate prohibited disclosures, one of which was to a fellow employee. The second was to a friend - not immediate family - whose evidence revealed that Mrs Donaldson had lied under oath.

The tribunal found that Dunedin were entitled to withhold payment under the agreement. Dunedin then applied for an order for costs ("expenses" in Scotland) but the tribunal refused to make that order.

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