Patronia Campbell, 49, had claimed she had a fling with Huw Merriman MP for Bexhill and Battle – who denied the fling ever took place – after boozy works drinks in June 2011 when they were colleagues at the administrators of collapsed Lehman Brothers International Europe (LBIE).
And she had claimed that after rejecting his pleas to have an affair managing director Mr Merriman subjected her to unjustified criticism of her performance.
She also alleged he engineered situations to allow others to criticise her, and also gave her unfair ratings in an annual review.
Ms Campbell, who earned £130,000 a year plus bonuses, took the bank to the East London employment tribunal claiming she was harassed, victimised and unfairly dismissed and asking for £250,000.
However, in a dramatic turn on the seventh day of the hearing and as Mr Merriman was due to give evidence, Ms Campbell withdrew all her claims against her former employer.
The change of heart came following an application from LBIE’s representative James Laddie QC, who asked for three of her claims of victimisation to be struck out by the tribunal panel.
After a short break, Jack Feeny, representing Ms Campbell, announced to the hearing the claimant would be withdrawing all her claims.
As the announcement was made the MP, who is married and has three young daughters, was seen smiling at the back of the hearing.
Mr Laddie QC said: “We’re delighted the claimant has finally seen sense and we will not be making any further applications.
“We have decided we will not be pursing the claimant for any legal costs. My clients are happy to be able to get on with the rest of their lives.”
Both Mr Merriman, who was due to give evidence today, and Ms Campbell refused to give comment to the press as they left court.
Mr Merriman, who became an MP in 2015, always denied the one night stand in 2011 took place and denied he tried to have an affair with Ms Campbell.
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