Ms Hall said she thinks being made redundant "almost destroyed her"
A teacher who suffered "sustained and deliberate acts of victimisation over a lengthy period" has been awarded £1.5m.
Karen Hall was awarded £59,000 in 2008 by an employment tribunal after she was bullied at a West Cornforth Primary School in County Durham.
The bullying continued, and after numerous appeals by the council it now faces a £1.5m compensation bill.
Durham County Council said it was a "complex" case which it had attempted to resolve outside the tribunal system.
Ms Hall made her first complaint against the head teacher about bullying and harassment to the council in 2004, but it refused to back her.
It continued, with 18 incidents logged over the next three years, and a subsequent industrial tribunal found in her favour.
Ms Hall said: "I wouldn't expect a pupil to do that, never mind a head teacher.
"It was just constant and relentless, just bullying and I felt very very frightened in school... it was emotionally intense".
'Almost destroyed'
However the bullying did not stop, and she was eventually made redundant in 2009.
She said she thinks this "almost destroyed her" and there were times when she would not leave the house and "closed herself in for protection".
The tribunal then said the council had "flagrantly ignored" its rulings, and increased her compensation to take into account loss of future earnings and pension.
There were a number of appeals by the council, until a judge at the Appeal Court found in Ms Hall's favour.
Caroline O'Neill, head of education at Durham County Council, said: "This has been a complex and lengthy case, throughout which we have sought careful legal advice. During the case, both parties have felt it necessary to lodge appeals in respect of the damages awarded.
