Debt-hit hospital trust faces massive bill over unfair sacking of boss

The Court of Appeal yesterday upheld the decision to force the Royal Cornwall Hospital Trust (RCHT) to pay damages to John Watkinson after he was fired in 2009 over unfounded claims relating to his conduct at his previous employer and concerns about financial management.

The trust lost an employment tribunal in May last year after he claimed he was in reality sacked for “whistleblowing” in connection with plans to move specialist cancer services out of Cornwall.

The amount of compensation due to Mr Watkinson was reduced on appeal from the initial £1.2m but the trust continued to try to get the ruling overturned.

In May this year it admitted that it had spent almost £380,000 to date on legal fees – an amount that negates the cut in the payout – at a time when it revealed it had debts of £25m.

The trust, which was criticised by the original employment tribunal chairman for the way it conducted itself during the legal proceedings last year, was castigated by appeal court judge Mr Justice Silber for the way it had pursued the case.

In his judgment, Lord Silber said: “We cannot leave this case without echoing the views of the employment tribunal first that ‘in many respects, we have found the evidence put forward by the respondent (RCHT) to be unsatisfactory’ and second that the failure of the respondent to call several important witnesses ‘is a matter of adverse comment’.”

RCHT chairman Martin Watts said the trust was “disappointed” by the outcome. “It has always been our view that important evidence was not given due weight at the initial employment tribunal in May last year,” he added. “We now consider this matter closed and wish to put the matter behind us to focus firmly on the future.”