ELIZABETH JACKSON: Lawyers acting in one of Australia's biggest sexual harassment cases are finalising an out of court settlement.
Twenty seven year old Kristy Fraser Kirk was suing David Jones, its former CEO, Mark McInnes, and the company directors for $37 million, claiming Mr McInnes made unwanted sexual advances at company functions.
Our reporter Brigid Glanville has been covering the story. I spoke to her a short time ago and asked her what happened overnight.
BRIGID GLANVILLE: Elizabeth, yesterday, from about 8.30 yesterday morning, Kristy Fraser Kirk and Mark McInnes were in a mediation session at the Human Rights Commission and then elsewhere in the city all day until they both left at about 10.30 last night.
I spoke to David Jones PR (Public Relations) people at about this settlement.
Now the figure has been undisclosed but of course we know it was a $37 million claim, and the figure's reported to be in the high six figures. Keeping in mind David Jones did make an offer earlier on to Kristy Fraser Kirk of around $850,000, so around that mark is what's been expected.
Yesterday during the Commission, when they left at lunch time, Kristy Fraser Kirk came out. She was crying, she looked very stressed. She was surrounded by her parents and her boyfriend. When, of course, the media pack were chasing her down the street she looked quite rattled.
Mark McInnes, when he left, was smiling, looked relaxed, was happy - not happy that the media were following him but didn't seem stressed that the media were following him when he got into the car at lunch time.
ELIZABETH JACKSON: Brigid, why was Kristy Fraser Kirk keen to do a deal like this and not pursue Mark McInnes through the courts?
BRIGID GLANVILLE: And some people may be surprised that she has signed a deal, or come to an agreement, because it seemed that she was determined to go through the courts.
But throughout the court proceedings the judge has been, you wouldn't say encouraging, but certainly the feeling has been that both parties should settle this - and not that he said anything of that nature, but it's such a big case. And I suppose for her, she's a young girl taking on this - it's a very big claim, it's a $37 million claim - it's often always better to settle these things outside of court, rather than to get to that process. It also becomes hugely expensive. I'd imagine both their legal bills are already hugely expensive.
ELIZABETH JACKSON: Now she has said, hasn't she, that she won't keep any of this money for herself? *See editor's note
BRIGID GLANVILLE: She has said that. She said that she will give it away.
Now I don't know if an undisclosed amount, if she does give it all away or how much she keeps. Naturally she's going to have to pay her legal fees, which could be already in the hundreds of thousands of dollars and then what's left of that, whether or not she donates that to charity. I'd imagine if she's making media statements throughout the day, I'm sure that question will be asked. *See editor's note
ELIZABETH JACKSON: What is the fall out, Brigid, from this case? This is a precedent setting case in many ways isn't it?
BRIGID GLANVILLE: It is and look Mark McInnes was one of the most respected CEOs in Australia.
When he joined David Jones they had a share price of around one dollar. When he left their share price was around four dollars. He really turned the company's fortunes around and he resigned in June after he admitted he behaved in a manner unbecoming of a chief executive.
He did get a sum - I think it was around $2 million - when he did resign. But I suppose in some ways he has been in some ways of course a public relations nightmare for the department store. Women are their main customer. The Board, of course, has denied knowing any knowledge of Mr McInnes' behaviour.
ELIZABETH JACKSON: Brigid, thank you.
Brigid Glanville.
EDITOR'S NOTE 24.11.10: The article originally reported that Ms Kirk would "give the money away" if she was successful. However Ms Kirk only ever said that if she won punitive damages she would give that money to a charity that worked against harassment and bullying.
The full story...
Private deal ends DJ's sexual harassment case
Bridgid Glanville reported this story on Saturday, October 16, 2010 08:10:00
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