In a ruling last week, the deputy chairman of the Labour Court, Caroline Jenkinson, said the lack of action by the hospital had caused the nurse to retire early on grounds of ill health. "This impacted on his health, his income and the level of his pension, " said the court.

In particular, the court found it "unacceptable" that management had allowed an initial investigation in 2002 into the bullying complaints to fail just because the alleged bully refused to co-operate.

The Irish Nurses' Organisation (INO), which represented the male nurse, said management later promoted the alleged bully to a senior post with responsibility over those who complained against that person. "This proves that management failed in its duty of care to the complainants, " said the INO.

The complaints of bullying and harassment were made in 1997, after which hospital management brought in an independent consultant to examine workplace relations. The INO said the resulting report concluded that over 80% of staff nurses had complaints of bullying against the same person. The health board failed to act on the recommendations, so the male nurse pursued his own claim against the board.

The allegation of bullying was "not taken seriously by management ", said the court. "The investigation carried out was flawed and was not in compliance with management's own procedures."

The health board argued in the Labour Court that the bullying complaints had been properly dealt with and the nurse involved had voluntarily resigned from his job.

A spokeswoman for the HSE in the midlands refused to comment on the court's findings. It is understood that the alleged bully is still employed at Portlaoise hospital.