Phil Woolas' lies lose election court case. He was the president of NUS in my time as a student and I'm pretty sure his election manifesto included a promise never to be an MP. (At the time, being chair of the Labour Students was seen as merely a step on the road to being one…)
Narrow election losers who win court battles to get a rerun have a habit of being humiliated due to a 'you lost, get over it' attitude of many voters. See the Winchester general/by-election results for the classic example, where a two vote majority was increased more than ten thousand times. What's going to happen this time? Will voters see the LibDem as cheated out of a win or express an opinion on the LibDems now?