A former general manager of Lillie’s Bordello, who claimed he had been accused of sexually assaulting a waitress and whistleblowing on the snorting of cocaine in the club, has settled a breach of contract case against his old employer.

James Doran, counsel for Peter Carmody, of Annfield Crescent, Castleknock, Dublin, told the Circuit Civil Court his client had been sacked by Lillie’s and was seeking compensation for unfair and wrongful dismissal.

Barrister Tom Mallon said Mr Carmody had been dismissed without notice for what the club’s owner, Noyfield Limited, considered was gross misconduct, including sexual harassment through the use of revolting language to a female member of staff, sexual assault and drinking on the job. He said a full defence to Mr Carmody’s claim had been entered.

Mr Doran agreed that Mr Carmody had sought legal advice shortly after his June 2014 dismissal and had mounted an Employment Appeals Tribunal challenge, which he had later withdrawn.

He had come to court to clear his name and obtain compensation after having been accused of gross misconduct which he denied.

Mr Carmody claimed that on March 29, 2014, it had been brought to his attention a waitress was serving a man who appeared to be openly snorting cocaine in The Lounge. He told security to remove him, but the waitress had said she knew him as a good customer and would ask him to leave.

Mr Carmody alleged that the waitress had instead brought him to a private room to facilitate his drug use.

He had reported the incident to management and a fortnight later found that the waitress claimed he had been verbally and sexually abusive towards her, assaulted her by grabbing her breasts, drank in work and gave drinks to employees. Management had then probed her allegations.

Mr Carmody had been suspended on pay, the investigation found him guilty of gross misconduct and, following a meeting with company director Lee Sim, he had been dismissed.

After a break yesterday, Mr Doran said the proceedings could be struck out with no order as to costs. No detailed outcome of the talks was divulged to the court.

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