Costs awards

Case 5: The facts

Annette Power was awarded more than £5,000 for disability discrimination and unfair dismissal, but a tribunal awarded costs of £10,000 against her on the grounds that she had conducted the proceedings in an unreasonable manner: she had rejected settlements of £10,000 and £25,000 respectively.

The tribunal found that she had been "unrealistically optimistic" about her claim, failing to acknowledge its weakness, and "intransigent" over negotiation.

The ruling

The Employment Appeal Tribunal (EAT) held that a tribunal is entitled to make an award of costs in a successful claim. If a party presses for an unreasonably high award, despite being warned that it is too high and that an application for costs will be made, this can amount to unreasonable conduct of proceedings.

Power v Panasonic UKEAT/0439/04

Case 6: The facts

Mr Khan pursued a number of claims against his former employer. A costs award was made against him at a hearing he was unable to attend, and he was not told why the order had been made.

The ruling

The EAT held that an absent party is entitled to know why a costs order has been made against them. The case was sent back for the tribunal to give the reasons for its decision.

Khan v Trident Safeguards and others UKEAT/0621/04