Independent reaches settlement with Allen

Independent Newspapers and the Sunday Independent's former crime correspondent, Ms Liz Allen, have settled the two cases outstanding…

Independent Newspapers and the Sunday Independent's former crime correspondent, Ms Liz Allen, have settled the two cases outstanding following her successful constructive dismissal case.

The newspaper had appealed a judgment against it of £70,500 awarded by the Employment Appeals Tribunal last August, when it found she had been constructively dismissed. It created a precedent in employment law by including compensation for stress suffered as a result of her dismissal.

The tribunal heard that Ms Allen was bullied and harassed by the paper's then news editor, Mr Willie Kealy, and its assistant news editor, Mr Jody Corcoran. The allegations were denied.

The tribunal unanimously found that no evidence had been offered by the Sunday Independent "to rebut the presumption of unfairness" and that Ms Allen had not contributed to her dismissal.

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During the tribunal hearing, counsel for Ms Allen, Mr Tom Mallon, had also argued that she had the right to compensation for loss of earnings incurred during illness caused by her employer's behaviour. The £70,500 award was one of the largest ever made by the tribunal. Independent Newspapers appealed against this judgment, and decisions of the tribunal must be appealed to the Circuit Court.

In a separate action, Ms Allen had started proceedings against the newspaper in the High Court for damages for personal injuries arising out of her treatment by its management.

The terms of the settlement are confidential, but it is understood Ms Allen will be paid a substantial sum, along with her costs.

The costs elements are likely to be greater than the financial award as costs are not awarded by the Employment Appeals Tribunal and are paid out of any award that may be made for wrongful dismissal.

The hearings in the Allen case took place over a number of weeks last February and April, and it was one of the longest unfair dismissal cases in the history of the State. Ms Allen was represented at the hearings by senior and junior counsel, the current chairman of the Bar Council, Mr Rory Brady SC, and Mr Tom Mallon.

When the appeal against the EEA award came up in the Circuit Court yesterday, Mr Mallon told Mr Justice Smyth that the case had been settled.

Mr Justice Smyth said he was pleased the parties had settled their differences.