The EAT have ruled that where the central allegation in a claim is found to be a lie, it would be perverse for the tribunal not to find that it constituted unreasonable behaviour for the purpose of costs.
In this case the claimant had argued that she was called "a black bitch" by her manager. After hearing evidence the tribunal concluded that this was not true. The tribunal did not however make a costs order as they believed the claimant has a genuine belief in her claim. The EAT disagreed and found the tribunal to be wrong in law.
Daleside Nursing Home v Mathew