The Court of Appeal says the police must pay compensation, back pay and legal costs awarded by the Employment Court last year to a policeman hounded out of the service.
The court dismissed an appeal by the police commissioner against the Employment Court's ruling of April 2009.
In that decision Judge Coral Shaw found that Sergeant Craig Hawkins was hounded out his job at Taumarunui by bullying from another officer, now gone from the force.
She also said former Ruapehu area commander Don Allan deliberately undermined Mr Hawkins' position.
Mr Hawkins was later reinstated.
She ordered police to pay four and a half years' back pay, compensation of $35,000 and almost $78,000 legal costs.
The police appeal against that judgment was rejected by the Court of Appeal this week, the New Zealand Herald reported today.
Justice Grant Hammond agreed with the Employment Court that Mr Hawkins had been driven from his job after years of persecution.
Mr Hawkins is back working at Taumarunui and has no problems with current senior officers.
The Herald said the police legal bill was now more than $215,000 without Court of Appeal fees and Mr Hawkins' costs which have yet to be finalised.
