David Jones sex case settled

Mark McInnes. Photo / Getty Images

Australia's biggest sexual harassment claim has been settled out of court for A$850,000 ($1.1 million) but the woman at the centre of the case says it is "no longer possible" to give any of it to charity.

Retailer David Jones, its former chief executive Mark McInnes and a former publicist, Kristy Fraser-Kirk, yesterday confirmed the settlement, which followed a breakthrough during conciliation talks at the Australian Human Rights Commission (AHRC) last Friday.

Fraser-Kirk, who had sued the company, McInnes and nine directors for A$37 million, agreed to accept A$850,000 - reportedly the same sum offered during earlier negotiations.

The 27-year-old, who claims McInnes made unwanted advances to her at two corporate functions, had promised to donate some of her compensation payout to an unnamed charity helping victims of sexual harassment and bullying.

However, yesterday she said that was "no longer possible", because the sum did not include the punitive damages she had sought. She is expected to take home about A$500,000 after paying her own costs.

In a brief statement to the Australian Stock Exchange, David Jones said the payout was "inclusive of all ... costs and expenses comprising a contribution from David Jones and a smaller contribution from Mark McInnes".

McInnes, who resigned in disgrace after the scandal broke in June, said the settlement "brings to an end a difficult time in many people's lives and hopefully ... marks the moment that everyone can begin focusing on the future". He was "looking forward to a new chapter in my family life and a resumption of my career in 2011".

McInnes, who had admitted behaving "in a manner unbecoming of a chief executive to a female staff member", repeated that the majority of allegations against him - made by Fraser-Kirk and other unnamed former employees going back 20 years - were "simply untrue".

Fraser-Kirk, who launched a Federal Court action as well as the separate AHRC complaint, said the case had triggered "real debate" about workplace harassment which she was confident would lead to change.

However, some analysts have suggested that the media frenzy whipped up by the case might deter other women from coming forward, while others say companies may stonewall future claims because David Jones' early attempts to settle were unsuccessful.