The Charity Commission has dismissed a complaint against Disability Action Yorkshire about how its trustees continued to contest an employment tribunal after it had lost the case.
The tribunal in December 2007 decided that the charity had unfairly dismissed its former chief executive Judith Oliver. DAY paid out £75,000 in compensation to Oliver and spent at least £60,000 on legal costs contesting the case, which eventually ran to five hearings over the course of the following year.
Reg Chalmers, a friend of Oliver who represented her at the employment tribunal, complained that the charity had misused its resources in continuing to contest the case even after it had lost.
But the regulator rejected the complaint. It could not conclude that the trustees had acted in bad faith in using funds to defend the case, it said.
A DAY spokeswoman said the trustees were pleased but not surprised at the outcome.