The States Employment Board has spent more than £90,000 on legal advice in its failed case against a sacked eye surgeon.
Amar Alwitry was awarded compensation for being dismissed a week before he was due to start work in 2012.
Last week the SEB lost its latest appeal.
Chairman Senator John Le Fondre says mediation failed to find an agreement.
Deputy Mike Higgins isn't happy with what's happened.
"The States Employment Board to date has been like a gambler who has lost money but keeps on going back in and trying to spend more money hoping to win back their losses.
"This has probably been one of the most shocking cases and waste of money by a government department."
A meeting has been arranged for this Friday for members of the SEB to discuss its next steps.
Senator Le Fondre addressed the matter in the States Assembly.
"Mediation has taken place previously, but an agreement wasn't capable of being reached. My understanding is that there is still an ability to do some further negotiations and we'll see what the outcome is over the next few days."
The trial into the Haut du Mont explosion, which killed ten residents nearly four years ago, has been told that Island Energy 'did not have systems in place to make sure what its employees were doing was safe'.
A Tunisian man, who sexually assaulted five women on the streets of St Helier, has been jailed for nine years, with deportation recommended upon the completion of his sentence.
Jurors have heard the 999 call made by Haut Du Mont resident Louisa De Almeida, reporting the smell of gas inside her flat, hours before the explosion that killed her and nine others in December 2022.
The supervising engineer of gas works that led to a fatal explosion at Haut du Mont was distracted when he attended the flats to check valves were closed, Jersey's Royal Court has been told.
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