A Tribunal may make a costs award of up to £20,000 against a party where, in the Tribunal’s opinion, a party has acted;
- Otherwise unreasonably.
When making a costs award the Tribunal, isn’t obliged to, but may take into account a parties means to pay. The Tribunal doesn’t have to limit a costs award to that which the party can now pay or may be likely to be able to pay within a specified time period, there just needs to be a “ a realistic prospect that the party might at some point in the future be able to pay”.
In the recent case of Chadburn v Doncaster & Bassetlaw Hospital NHS Foundation Trust and another, a case where the Tribunal found the Claimant had fabricated claims and therefore made the decision to award costs against them; the EAT upheld the Tribunal’s decision to award costs, despite the Claimant’s current inability to pay, as they found the Tribunal had been able to conclude that at some point in the future the Claimant may be able to pay those costs.