Law firm settles 'homophobia' discrimination case

Clifford Chance, the world's biggest law business, has paid out an undisclosed sum in settlement of what is believed to be the first claim against a law firm for discrimination on grounds of sexual orientation.

The case is the latest brought under the sexual orientation legislation to hit the City and could have cost the firm up to £1m.

Last year Peter Lewis, a former head of global equity trading at HSBC, claimed £5m for unfair dismissal from the bank after a colleague alleged he made unwelcome sexual overtures while showering in the gym. Lewis lost the case but has won leave to bring the case again later this year.

In this latest case, Michael Bryceland, a former partner in Clifford Chance's competition department, sued the so-called "magic circle" firm in November. It is understood that Mr Bryceland alleged both direct and indirect discrimination.

The claim never made it to a full hearing and was withdrawn in April. Mr Bryceland, who was reported by the Lawyer Magazine to be one of Clifford Chance's rising stars, left the firm shortly after winning the settlement. At the time of his departure, Clifford Chance told the Lawyer he was taking a break from the law.

Although the settlement and original damages sought remain confidential, experts suggest a claim would seek to mitigate lost earnings and future ones: for a magic circle partner, this could run into seven figures.

It is understood that Parker & Co Solicitors advised Mr Bryceland, while Clifford Chance represented itself.

Mr Bryceland was one of a group of competition lawyers who joined Clifford Chance with former head of department Chris Bright from Linklaters in 1999. Mr Bryceland was made up to partner in 2003.

Neither Mr Bryceland's law firm nor Clifford Chance would comment on the case.

In recent years fears have been raised that homophobia in the City is as much as a problem as sexism was in the 1960s and 1970s.

In May the chief executive of BP, Lord Browne, was forced to resign after a court found he had lied about his homosexual private life.

A report last year found that many gay and lesbian solicitors working in large City law firms are afraid to "come out" because of the dominant macho culture which they say has "undertones of homophobia". The finding, contained in a Law Society report, followed an investigation into the experiences of gay and lesbian lawyers in the workplace.

The Law Society called on law firms to challenge a perception of discrimination against gay solicitors.