A council has begun legal action to recover more than £750,000 from its former chief executive.

Christine Laird, 50, spent 18 of the 36 months that she was employed by Cheltenham borough council as its £75,000-a-year managing director off work suffering from stress. Her employment with the council was terminated in August 2005.

The council is now claiming costs from its former employee totalling £754,392.47 in the High Court. The result is expected to be a landmark ruling as, for the first time, a local authority is bringing action under the Local Government Act 1999.

The council claims that Mrs Laird “misrepresented and misstated” her fitness for employment on an application form. The case against Mrs Laird, scheduled to last 38 days, is due to begin on January 26.

Mrs Laird was appointed chief executive in January 2002 and within weeks infuriated colleagues by sacking five long-serving officials. She was suspended on full pay in June 2004 for undisclosed reasons.

Mrs Laird filed 25 official complaints against Andrew McKinlay, the council leader, but only one was upheld. Mrs Laird then pursued a legal claim against him but lost and was ordered to pay £96,100 in costs.

Steve Jordan, the current leader of the council, said: “The council has taken legal advice from experts and decided to pursue a claim against the former chief executive.”

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