A former managing partner who brought employment tribunal claims against his firm has lost an appeal against a significant costs order, after the Tribunal found he had not been truthful about his financial circumstances.
Background
Michael Willis, who previously worked for law firm GWB Harthills LLP, was diagnosed with cancer in 2018 and went on long-term sick leave. He began receiving payments under a permanent health insurance (PHI) scheme. However, a claim arose over whether he was also entitled to receive a profit share paid into his pension while receiving PHI benefits.
Mr Willis brought two claims to the Employment Tribunal alleging:
- disability discrimination; and
- victimisation.
These claims were unsuccessful, and the Tribunal was highly critical of his conduct. In an unusual act for the Employment Tribunal, ordering him to pay the respondents’ legal costs, capped at £210,000.
Appeal to Not Pay Legal Costs
In his appeal, Mr Willis argued that the Tribunal had failed to properly consider the impact of the costs order on his wife and children, and that it had overestimated his ability to pay.
Most significantly, Mr Willis claimed his home, purchased for £850,000, had only increased in value to £950,000 over 20 years. However, the Tribunal found this unlikely, citing Zoopla estimates valuing the property between £1.47 million and £2.2 million.
In fact, the Tribunal was stated that they were entitled to take a “reasonably rosy” view of Mr Willis’s future financial circumstances and that the Tribunal was not legally required to consider the emotional or practical consequences of selling the home.
Why is this Case Significant?
This case is particularly significant because employment tribunals rarely award costs, even when a claim is unsuccessful. Costs are typically only ordered in cases where a party has acted unreasonably, vexatiously, or abusively in bringing or conducting proceedings.
The fact that such a substantial costs order was made, and upheld on appeal, highlights the Tribunal’s strong disapproval of Mr Willis’ conduct and credibility.
This decision serves as a reminder that while tribunals are designed to be accessible and low-cost, they will not hesitate to penalise parties who misuse the process.
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