All the details below is my opinion based on facts and evidence I personally hold.
Without commenting on the specifics of any particular case, I think the underlying continuing problem is one of inept arrogance of government officials and managers promoted WAY beyond their abilities.
Add this to the myopic "This is our island, we're in charge and we'll do want we want" attitude and you have an explosive mix. Ok, it's a bit more complex than that but most will recognise the paraphrase in quote marks.
Of course it all goes wrong when they choose an inconvenient but capable victim and it's high time it stopped for good. The Manx taxpayers end up making amends but the difference here is it's out in the open (so much so, it makes the national BBC news).
Twice in the last 30+ years, I have been personally involved in 2 other cases of very unfair treatment of most able and decent professionals where the significant settlements were kept quiet. Both totally unecessary cases were brought about by inept 'control freak' managers promoted way beyond their skill set, aided and abetted by numpty government officials.
The details of the more recent case a few years ago were imo so vile, I believe they would also made the national news had they been made public (by tribunal) at the time instead of legally gagging all concerned.
I love this place and very rarely criticise it, but sometimes our officials do such daft things, which people elsewhere cannot understand, that makes us look ridiculous to the wider world. If it takes £3M+ to do stop these sorts of cases, so be it.
The ultimate victims are always the Manx residents. Not only do they lose quality professionals, these cases inhibit others from applying and we all end up paying both in lost ability and financially.
Edit for spelling/word order