Former Cheltenham council executive Christine Laird was the victim of a malicious "dirty tricks campaign" which contributed to the wrecking of her health and career, her husband told the High Court yesterday.

Hugh Laird said that in 2003, when Liberal Democrat Andrew McKinlay and his cabinet were in charge of Cheltenham Borough Council, offensive and libellous material about her was placed in council members' pigeon holes.

"It had obviously been put there to influence members and to disadvantage Christine," he said. "I thought it was pathetic and disgusting.

"Those that aspire to public office are supposed to be decent, effective and inspirational. How can anyone capable of sending such disgusting anonymous letters be considered fit to hold public office?"

Mr Laird was giving evidence for his 52-year-old wife in her defence to a £1-million action by the council. The authority alleges that Mrs Laird was guilty of "fraudulent or negligent misrepresentation" by withholding details of her history of depressive illness when she applied for the post of managing director.

She took up the post in February 2002 and left in 2005 after taking sick leave, as a result of which the council says it suffered substantial financial loss.

Mrs Laird claims the appointment was "unconditional" – there was no mention of a medical report being required – and that she was unlawfully removed from her post. She says the work she did for the council was worth at least £1.5m.

Mr Laird told the court: "I remember how distressed she was after McKinlay was made leader. I think it must have been a shock to the Liberals to get into power as they were simply not prepared. I remember they had to look for support from Christine to develop a plan and she had to help them form their administration.

"It must have been humiliating for the new cabinet to have been so hopeless and pathetic that they needed to ask for help from a council officer in this way – help that they seemed to resent whilst still wanting and needing it."

Mr Laird told the court that after things had gone badly wrong at the council his wife tried to patch up her professional relationship with Mr McKinlay.

But her attempts to discuss common interests and "have a drink together" were always rebuffed.

He said despite his wife doing sterling work, including securing Government money for housing in Cheltenham, she was asked to resign.

Mr Laird claimed that his wife came under daily attack from the Lib Dem leader and was threatened with the formation of a disciplinary panel – yet she did not know what she had done wrong. The treatment she was receiving and the clear failure to exercise a duty of care towards her was driving her to breaking point.

He said the dirty tricks continued even after she had been certified as unfit for work.

One "shockingly bad and desperate trick" was when Mr McKinlay, during a meeting with one of Mrs Laird's group directors, left his mobile phone on after talking to a reporter so that the journalist heard everything he said about Mrs Laird, he said.

Earlier this month Mr McKinlay told the court that Mrs Laird was such a bully that he felt "physically sick" every time he entered the town hall. He said his confidence was badly undermined by Mrs Laird, who he described as being "aggressive and bullying" towards him.

Mr McKinlay said she refused to discuss his concerns and "intimated that I was weak, incompetent and had a problem with women", and described her manner towards him as "dismissive and contemptuous".

The hearing continues.