The tribunal found that Ms Hall suffered "sustained and deliberate acts of victimisation over a lengthy period"
An inquiry is to be held into how an employment tribunal payout of £59,000 to a County Durham school teacher ended up being £1.5m.
Karen Hall was awarded compensation in 2008 after she was bullied at West Cornforth Primary School.
After a number of appeals by the council, a judge at the Appeal Court found in Ms Hall's favour in July.
Her compensation was substantially increased. The council wants to find out what lessons have been learned.
Councillors raised the case at a full council meeting, when it was asked why the appeals had been made, who had taken the decision and on what advice.
One councillor put forward the motion: "How did this happen and what lessons have been learned?"
It was then agreed that an inquiry should be held.
Leader of the council Simon Henig said: "It would be best practice in a case like this.
"It's quite right that all members of the council supported [the motion] so we can see exactly what happened and go forward."
- Published21 July 2015
