A TRIBUNAL has ruled in favour of a North-East council accused by its former communications manager of unfair dismissal.

The case of Jane Knox against Stockton Borough Council is believed to have cost council taxpayers more than £100,000.

Councils chiefs yesterday said they felt vindicated by the findings of the tribunal and vowed to seek costs.

The hearing took place in Newcastle over 30 days between last November and April, and Ms Knox said she was victimised and sacked for making claims in the public interest

She accused the council's former assistant chief executive, Anthony Gardner, of bullying and said senior managers withheld information from council members.

But, in a 62-page judgement, the tribunal, chaired by Jeremy Hargrove, said: "We can find no basis for a belief, reasonable or otherwise, that Mr Gardner had bullied her."

It added that Ms Knox's claims that she was dismissed for making a protected disclosure and was unfairly dismissed were not well-founded.

The judgement also concluded that the case had become an obsession, both for 52-year-old Ms Knox and her partner, Julian Brennan, who represented her.

It said: "This is demonstrated by the absence of objectivity in their approach to the litigation and the unfortunate absence of ability to see the wood for the trees."

George Garlick, the council's chief executive, said: "This case has been completely without foundation, and the result is a total vindication of the council's actions.

"It is simply not acceptable for groundless allegations to be made and appalling that it has resulted in a great deal of stress for several council staff."

The council said it would seek its costs for the case, including significant legal expenses. It said it also had to bear substantial costs from an internal investigation.

The Government watchdog, the Audit Commission was also brought in.

A council spokesperson said: "Despite our best efforts to resolve the situation, Ms Knox's relationship with council officers broke down completely.

"As a result, the authority had no option but to terminate her contract from December 2004."

Ms Knox, from Ingleby Barwick, near Stockton, has six weeks to appeal against the unanimous judgement.

Mr Brennan said they intended to