Rose Gibb has lost her claim against Maidstone and Tunbridge Wells trust for breach of contract.
Ms Gibb was suing the trust for breach of contract after it refused to pay her the full £250,000 pay-off she had originally been offered to leave the trust.
The judge at the High Court ordered her to pay costs. The trust’s costs alone are expected to be around £90,000.
The judge, Mr Justice Treacy, has also refused Ms Gibb permission to appeal.
Ms Gibb resigned just days before publication of a damning Healthcare Commission report into outbreaks of C difficile at the trust that contributed to the deaths of at least 90 people.
In his judgement, Mr Justice Treacy said the trust was acting outside its powers. It was being “irrationally generous” towards Ms Gibb in wanting to pay her much more than it legally would have had to.
He found that the non-executives at the trust were “personally reluctant to see Ms Gibb depart, notwithstanding the findings of the HCC report”. In his judgement, their personal views clouded their approach, which was one of wishing to be generous to Ms Gibb.