Manx Family Services, the care provider which lost its DHSS contract to look after children, has been ordered to pay almost ?20,000 in damages to a former employee.

A court head MFS breached its duty of care to Leslie Moorcroft when a senior manager wrongly accused him of theft, fraud, sexual misconduct and incompetence in a reference to another company.

Acting Deemster Andrew Moran said the reference was ill-considered and ill-founded, and he also said MFS founder Richard Kneen and his wife Pat lied in their evidence.

He said any of the accusations would have been grounds for sacking Mr Moorcroft but Manx Family Services failed to investigate any of them properly.

The document was described as the ‘kiss of death’ by Acting Deemster Moran after the court heard Pat Kneen accused Mr Moorcroft of stealing pocket money from children in his care, stealing audiovisual equipment from a house, fraudulently claiming expenses, having sex with another member of staff and incompetence.

The court heard Richard and Pat Kneen instead formed their opinion of Mr Moorcroft carelessly and negligently and their investigations had been manifestly deficient.

Acting Deemster Moran added Richard Kneen had avoided questions, told brazen lies and attempted to deceive the court while his wife was an unsatisfactory witness who was dishonest and evasive in her evidence.

Mr Moran awarded Mr Moorcroft ?19,981 for lost earnings.