Judge Shaw implicated both men in the handling of failed assault charges laid against Hawkins which were used to place further pressure on him. She stated that then-police commissioner Rob Robinson "should and would have foreseen" Hawkins' resignation and the reasons for it.
Hawkins would not comment, but his lawyer Peter Brosnahan of Wanganui said his client was "fully justified" in seeking reinstatement as a police officer.
It is the first of a number of cases expected to come out of management of the Taumarunui police station.
Police headquarters would not comment on the judgment, saying only that an appeal would be lodged.
Central District commander Superintendent Russell Gibson said the station was well-managed and morale was high.
The judgment has led to calls by former senior detective Bryan Rowe for police headquarters or Police Minister Annette King to launch an inquiry. Judge Shaw says seven police officers at the station were counselled by a clinical psychologist because of morale at the station. "There was tension between Detective Sergeant Webb and other staff because of his bullying and intimidation of them," the judgment reads.
A complaint from a female officer in 1999 led to Detective Inspector Doug Brew being sent from police headquarters in Wellington to investigate problems at the station.
Brew interviewed Hawkins on the promise of confidentiality and was told that Webb "overloaded female staff, that he was a bully and was difficult to work with".
The judge found that - despite assurances - Brew then told Webb about Hawkins' concerns. "From then on, Detective Sergeant Webb's behaviour to Mr Hawkins became even more difficult." Hawkins was told by a colleague that "Webb was serious about getting him for what he said".
Hawkins also went to senior officers to report Webb's behaviour, which led to the area commander, Inspector Allan, being briefed on the problem "at least half a dozen times".
At the time Hawkins, who was keeping notes, recorded his concern that Allan and Webb would "fit him up".
In March 2001, an investigation was launched by Inspector Allan into an assault allegation made against Hawkins 12 months earlier.
Allan appointed Webb to carry out the investigation - a move slammed by the judge. The allegation against Hawkins was that he had assaulted two youths being held under arrest at Taumarunui police station.
The allegation was first made in March 2000 and was known of by Allan for a year before the inquiry was launched. It was later thrown out of court because of "credibility problems".
After Hawkins learned of the inquiry, he fell victim to a stomach ulcer, and was later diagnosed with depression and stress, with ideas of self-harming. He eventually perfed from the police force but not before Allan had told officers at a meeting that Hawkins would not be returning, that he was "surprised he was still in the country" and that "based on the evidence, it would be foolish for Mr Hawkins to defend the [court] charges".
She found that Hawkins was constructively dismissed through "ongoing betrayal of his trust and confidence" in the police.