The country's top military officer, Air Marshal Bruce Ferguson, faces possible contempt of court proceedings after a judge said he tried to intimidate witnesses in an employment row.
Chief Employment Court Judge Tom Goddard awarded archivist Dolores Ho $25,000 compensation and said the Defence Force Chief's actions were "reprehensible".
He said there could be no doubt about the intimidatory nature of a letter written by Air Marshal Ferguson and another by a second officer to two other Defence staff who were going to give evidence for Ms Ho.
She will return from sick leave after Anzac Day to her job at the Waiouru Army museum, although the court rejected most of her claim for damages of more than $200,000.
The case involved a claim by Ms Ho after she was given a formal warning over a staff matter.
The investigation that led to that warning referred to an earlier investigation that had been the subject of a confidential settlement.
Her complaints included failure to provide training as promised, breach of confidentiality over the resolution of an earlier dispute, breach of contract, humiliation, loss of dignity, injury to feelings and intimidation of witnesses.
Judge Goddard said Ms Ho was entitled to remedies for insensitive handling of the confidentiality of a 2002 mediation settlement.
The impact of that was short-lived and justice would be done by a moderate award of $5000.
But on the intimidation of witnesses, he awarded her $20,000 and ordered Defence to meet all her legal costs.
Air Marshal Ferguson remains under investigation because Judge Goddard has referred the letters to the Solicitor-General to see if they comprise a contempt of court.
Ms Ho's lawyer, Peter Cullen, described the attempted intimidation of the Defence Force's principal chaplain, Julian Wagg, and museum curator Windsor Jones, as blatant.
"I've never experienced anything like it. It was so public, so deliberate and so bold."
But the Weekend Herald understands the Defence Force had actually asked the Crown Law Office to vet the two letters before they were sent. Crown Law yesterday refused to say if they did offer legal advice.
Attorney-General Michael Cullen said he had full confidence in Crown Law's chief executive, Solicitor-General Terence Arnold.
Air Marshal Ferguson, who is travelling to Gallipoli for Monday's Anzac Day commemorations, said time would be taken to consider the findings. Defence had never intended to intimidate witnesses and letters sent to them were withdrawn as soon as it was realised the judge had interpreted them as intimidating.
He would not comment on the fact that the letters went out in the first place because he had signed one of them.
"I will certainly have to take responsibility for the letters I signed. I at the time wasn't aware it could be interpreted as intimidatory. I thought it was stating a situation."
The second letter was written by Waiouru Army commander Colonel Kevin Burnett. Both expressed concern that Mr Jones and Mr Wagg had volunteered to give evidence for Ms Ho against their own employer.
Judge Goddard said Mr Wagg subsequently made extensive changes to his evidence and may have been less than open with the court. He said whether that damaged Ms Ho's case was not the point.
"It is sufficient if the potential was there. I find the behaviour was reprehensible and its effect ... had an impact on the applicant'smental and physical health."
Judge Goddard said Air Marshal Ferguson had had a strong case to justify the Defence Force's employment actions against Ms Ho, which made it unfortunate that he had resorted to "improper means as well as fair ones in order to win the case".
Air Marshal Bruce Ferguson
Born: Napier, attended Tauranga Boys' College. Age 55.
Family: married to Rosemary. Three children.
Career
Joined RNZAF 1969.
Flew Iroquois helicopters. Leader of "Red Checkers" aerobatic team.
Former Aide-de-Camp to the Governor-General.
1984 Air Force Cross.
1994 OBE.
1997 Assistant Chief of Defence Force (Personnel).
2002 Appointed Defence Force Chief.
- additional reporting NZPA
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