Asia-Pacific

$37m sexual harassment suit settled in Australia

(Agencies)
Updated: 2010-10-18 10:52

SYDNEY - A sexual harassment lawsuit that shocked Australia's business community with its size has been settled out of court for a fraction of the original claim of A$ 37 million ($36.6 million).

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Upscale department store company David Jones Ltd. announced Monday it had agreed to pay A$850,000 ($842,000) to former publicist Kristy Fraser-Kirk to drop her case against former CEO Mark McInnes. Kirk confirmed the settlement.

McInnes resigned in June after admitting to acting inappropriately toward a female staff member, and Fraser-Kirk identified herself as the person involved soon after when she announced her intention to sue David Jones and McInnes.

Fraser-Kirk's claim of A$37 million was the largest in Australia in a sexual harassment case.

David Jones said in a statement to the stock exchange that the payout to Fraser-Kirk included all legal and other costs, and would be paid by the company with a smaller contribution from McInnes. Further details were not disclosed.

In a separate statement, Fraser-Kirk said she had intended to donate any money she was awarded in punitive damages, but that because the case was resolved out of court she would not be donating the money.

David Jones is Australia's equivalent of Bloomingdale's in New York or Harrod's in London, with tony department stores in all major cities in Australia, stocking items from designer clothes to white goods, televisions and gourmet meat and cheeses.