In Kapoor v Governing Body of Barnhill Community School, the EAT held that even though the Claimant had given false evidence, this did not amount to automatically unreasonable conduct warranting a costs order.
The Employment Tribunal had previously dismissed the Claimants claim for race discrimination and then made an award for costs against the Claimant. The Employment Tribunal considered that the Claimant had given false evidence and had therefore conducted the proceedings unreasonably and ‘it was as simple as that’.
The EAT pointed out, following HCA International Ltd v May-Bheemul, that the context, nature, gravity and effect of the lie were relevant. The Respondent did not have to show a clear causal link between the lie and the costs incurred. The Employment Tribunal should have considered a number of factors as a whole, there are numerous reasons why a claim may fail which do not relate to false evidence. The matter was remitted to the Employment Tribunal for reconsideration.