NHS National Services Scotland (NSS) revealed it has been paying six solicitors from the Central Legal Office (CLO) to act on behalf of the health board and Dr Beth Upton.
The CLO appointed Ms Russell as NHS Fife’s legal counsel, but it also has a team of lawyers advising the health board, reviewing and paying documents and attending the trial.
In a long-running case, Ms Peggie is suing her employer and Dr Upton after she was suspended for raising concerns about sharing a female changing room with the transgender medic at Victoria Hospital in Kirkcaldy.
NHS Fife’s legal team argued that the nurse went “too far” when she challenged Dr Upton in the changing rooms, with a comparison allegedly made to transgender rapist Isla Bryson – although these events are disputed.
Costs accrued by the health board now exceed £320,000, with The Herald revealing a breakdown of the legal fees for the first time last week following a lengthy freedom of information (FOI) battle.
Ms Russell and her legal team have been paid £159,797.73 as of August 20, 2025.
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NHS Fife fees to CLO solicitors also reached £149,166 during the same timeframe.
A further £10,389 has also been spent on “other outlays” in defending the case, but additional details were not provided.
After that information was unveiled, The Herald on Sunday asked the NSS to confirm how many solicitors are supporting NHS Fife with this tribunal.
Carolyn Low, director of finance, corporate governance and legal services at NSS, said six members of staff have been involved since May 2024, with their duties also including instructing Ms Russell on the legal argument.
This newspaper then asked whether the six solicitors were salaried, with Ms Low responding: “The Central Legal Office operates on a cost recovery basis.
“Our fees cover all costs incurred in supporting this case for NHS Fife, including directly employed staff time and expenses.”
Scottish Tory MSP Pam Gosal has accused the NSS or employing an “army of lawyers” to tackle the Peggie case.
She said: “Those responsible must come clean on why such an army of lawyers have been tasked with dealing with this particular case.
“This is taxpayers’ money that would have been better spent on frontline healthcare services which are in complete chaos in NHS Fife on the SNP’s watch.
“It seems astonishing that so many lawyers have been called in to fight Sandie Peggie who was just showing some common sense and standing up for her rights and safety.”
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The employment tribunal moved a step forward as Employment Judge Sandy Peggie began his deliberations on Tuesday.
A decision is not expected until around November – but an appeal is likely, with costs expected to rise further.
NHS Fife, which is sharing a legal team with Dr Upton, is only liable for the first £25,000 because it is a member of the Clinical Negligence and Other Risks Indemnity Scheme (CNORIS).
This is a pooling arrangement between Scottish health boards to avoid severe financial loss.
The remainder of the bill is covered by the scheme, which is paid for through the Scottish Government’s Health and Social Care Directorate that underwrites the scheme.
While The Herald successfully challenged the NSS to reveal the breakdown in legal fees, the organisation said it could not reveal the hourly or daily rate paid to Ms Russell because it risked jeopardising its future “commercial interests”.
Ms Peggie claims NHS Fife breached the 2010 Equality Act in its handling of complaints around the gender row.
Employment Judge Mr Kemp, and his tribunal panel, are set to determine whether the Kirkcaldy nurse was discriminated against on the basis of her sex.
The judge is also expected to rule on whether Dr Upton’s presence in the female changing room amounted to sexual harassment, while Ms Peggie also accuses NHS Fife of victimisation.
Ms Peggie has also launched a separate legal action against the health board and senior medics.
The fresh claims relate to evidence heard during the tribunal and in response to a controversial press release sent out to NHS Fife.
It relates to three senior medics opposing the decision to lift Ms Peggie’s suspension, with the legal team arguing this only emerged during the tribunal.