Racial discrimination claims against City firm and former CEO dismissed by employment tribunal

A City firm and its former chief executive have been cleared of racial discrimination by an employment tribunal.

Employment solicitor Noel Deans, who is of African/Caribbean heritage, brought claims of racial discrimination and wrongful dismissal against RBL Law Limited, now RBG Holdings, its former chief executive Nicola Foulston, founder and senior partner Ian Rosenblatt and compliance officer Anthony Field.

The tribunal found that although Dean’s first complaint of race-related harassment/direct race discrimination was well founded, it was out of time and therefore dismissed. The judgment said it did not grant Deans an extension of time as he was ‘fully aware that he could pursue the complaint…but chose in the full knowledge of all his employment rights, not to take the matter any further, either internally or externally’.

It added: ‘In our judgement, he has only sought to revive it in order to cause maximum embarrassment to the respondents’.

Dean’s other complaints including unfair dismissal, wrongful dismissal, and breach of contract failed on their merits and were dismissed.

Deans joined Rosenblatt as an employment partner in 2017. He was head of the department until he left the firm in 2020.

Part of his employment tribunal claim covered a 2018 dinner which Rosenblatt hosted to update the firm’s partners on the parent company’s London Stock Exchange listing. During the dinner, former chief executive Nicola Foulston used a racist phrase to refer to a ‘tricky aspect of the IPO’. Foulston, while giving evidence at the tribunal, apologised for her use of the word.

Deans claimed Rosenblatt had laughed, which he denied. Rosenblatt said he had interrupted Foulston and told her she could not say what she had said.

Employment judge Emma Burns said: ‘Our finding is that he did not laugh, but was offended by what Ms Foulston had said and admonished her in response.’

Acknowledging that Foulston’s evidence corroborated Rosenblatt’s, the judge added: ‘Ms Foulston had ceased to be employed by [the firm] and was in dispute with [the firm]. There was therefore no reason for her to be unduly loyal to Mr Rosenblatt.’

Considering Foulston’s use of the racist phrase, the judgment said: ‘We were satisfied that Ms Foulston did not use the phrase with the purpose of violating the claimant’s dignity or of creating an intimidating, hostile, degrading, humiliating or offensive environment for him. Our decision, however, is that using the word had the effect of creating a offensive environment for the claimant, albeit that this was fleeting in duration.

‘We add that this effect was not unique to the claimant. Mr Rosenblatt and others in attendance at the dinner also found the word offensive. However, given the claimant’s race and heritage, he had a unique personal connection to the phrase used because of its origins from the times of slavery.’

Considering Rosenblatt’s greeting of Deans with a fist bump, the judgment said that the gesture was a ‘misjudgement’ and ‘insensitive’ but did not find the conduct met the threshold for constituting unlawful race-related harassment.

A spokesperson for RBG Holdings plc, said: ‘We are pleased the tribunal has unanimously dismissed each and every claim made by Noel Deans. This has been an extremely time-consuming and distressing process for our team to endure, and we hope the spotlight can now return to the great work that we are known for.’

Nicola Foulston said: ‘I welcome the judge’s verdict and reiterate my commitment to inclusive workplaces. I look forward to continuing working in the private equity and venture capital space at an incredibly exciting time for the sector.’

Noel Deans represented himself. Richard Leiper KC, of 11 KBW, represented RBL Law Limited, Ian Rosenblatt and Anthony Field. Dr James Bickford Smith, of Littleton Chambers, represented Nicola Foulston.