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Recent sex harassment case ‘sets a precedent for exemplary damages’ in law firms
The decision by the Federal Circuit Court to award $170,000 to the former employee of a boutique firm for “relentless” sexual harassment offers lessons for employers as well as proffering hope for women across the profession, argues one lawyer.
Jerome Doraisamy
In late May, the Federal Circuit Court ordered Owen Hughes, the principal of Bangalow-based boutique firm Beesley and Hughes, to pay a cumulative $170,000 in damages to his former employee, Catherine Hill, for what it described as “a very grave example” of sexual harassment.
This award from the court, he said, “should send a warning to anyone who may have ‘crossed the line’”.
“It shows that not only is it important to ensure that conduct of this type is prevented, but if it is discovered or admitted, that subsequent actions and response are appropriate and do not seek to coerce the victim into refraining from exercising any rights they may have,” Mr Schultz said.
There are lessons for law firms from this judgment, he continued.
“Law firm employers and indeed any employer in general need to accept that objectivity is required in considering their conduct and that of staff. It doesn’t matter what you subjectively thought your intentions were by acting in a particular way, but rather, what, viewed objectively, that conduct was likely to be seen as from the eyes of the victim and an objective bystander,” he explained.
“Employers need to be alert to the fact that, viewed through another lens, conduct or actions can be viewed very differently, and if that occurs in the context of sexual harassment, substantial liability incurred.”
The judgment should also, he noted, provide some level of reassurance to women (and, in some cases, men) who have suffered from such harassment or misconduct in legal workplaces.
“This case should give hope to men and women who have been sexually harassed or ‘pursued’ by a superior or employer that they do have a voice and that they do have access to redress,” Mr Schultz said.
“They can feel comfortable that their concerns will be taken seriously and that in the context of an inequal relationship, any sexual harassment will not be condoned.”
And looking more broadly across the Australian legal profession, the case highlights the risk in partners or practitioners in senior roles pursuing those who are their subordinates for a relationship which is more than platonic, he asserted.
“The inequality in their positions in the organisation significantly amplifies the risk of what may have been intended to be a relatively innocent pursuit of romantic goals. As was found in Hill v Hughes, it can amount to harassment that breaches the Sex Discrimination Act,” Mr Schultz concluded.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly and HR Leader. He has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. In June 2024, he also assumed the editorship of HR Leader. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
You can email Jerome at:
