''Clearly there's a political strategy in bringing attention to the fact that this sort of action is just totally unacceptable and that the person should be punished, that it goes beyond compensation,'' Thornton said. ''That's certainly a very interesting dimension, to really highlight the case that it's not just another pinch behind the strongroom door and that you just give the person a few dollars to keep quiet.''

Before the claim was lodged this week, McInnes had resigned and left the country. He was paid out $2 million. His spokeswoman has denied rumours he is attending a sex treatment clinic.

The $37 million message is also likely to resonate with employers, Thornton says. ''A huge percentage of women, if not most, have actually been subjected to some form of sexual harassment in the workplace … this is going to have an enormous ramification.''

David Jones is confident it is covered by insurance, and that the $37 million claim will have no impact on the expected growth of its profits in this year and next.

In a smaller, yet relatively large victory, Malgorzata Poniatowska recently won $466,000 from her employer, Employment Services Australia, in a discrimination claim upheld by the Federal Court of Appeal. Most of the time, damages awarded are far less - as David Jones was quick to point out this week.

The retailer sent journalists a list of recent cases, showing damages awarded more commonly ranged between $2000 and $24,000. According to figures from Thornton, in the 2007-08 financial year, 612 sex discrimination claims were lodged in Victoria, and 288 in NSW. A further 857 were lodged with the Australian Human Rights Commission. Most involved sexual harassment or pregnancy.

Yet just 1 per cent of claims progressed to a hearing; most were settled. Few can bear the financial risk of taking on their company.

If Fraser-Kirk loses after a trial, she could be liable for hundreds of thousands of dollars.

Her spokesman, Anthony McClellan, said, ''That's a matter between Kristy and her lawyers.''

The $37 million figure sought represents 5 per cent of the $700 million in profits David Jones made in seven years under McInnes, and another $2 million from McInnes, 5 per cent of his salary.

There is no established standard of 5 per cent. ''We believe that was a reasonable level of penalty for the culture of sexual misconduct, harassment and bullying at David Jones,'' McClellan said.

This case is different in other ways too. Fraser-Kirk has joined McInnes personally as a respondent, although most claims target only the employer, using a well-established principle of vicarious liability. Also, unlike the hundreds of claims lodged each year, this one is not being fought under the Sex Discrimination Act.

Instead, Fraser-Kirk seeks to prove breaches of her employment contract, the Trade Practices Act, tort law and equity law, in the Federal Court.

Fraser-Kirk is claiming David Jones and/or McInnes breached their duty of care to her by exposing her to unnecessary risks, and that McInnes trespassed upon her by placing his hand under clothes and touching her bra strap, also by lifting her up in a hug and trying twice to kiss her on the mouth - causing her loss and damage.

She claims David Jones breached the Fair Trading Act when, after the matter came to public attention, the retailer and its directors made misleading statements that there was not a culture of sexual harassment in the company. She claims four other women were victims of McInnes's behaviour and that David Jones knew of three.

Josh Bornstein, a partner with the law firm Maurice Blackburn, is representing two air-traffic controllers who claim Air Services Australia allowed extreme sexual discrimination and bullying. The women are seeking more than $1 million each. Bornstein is also running his case in the Federal Court, rather than the Human Rights Commission, which deals solely with discrimination. But he is not seeking punitive damages.

He says the punitive damages are ''an interesting approach to public relations'' but he's ''bearish'' about whether they will be awarded.

''Most cases of substance in this area tend to settle. If there is substance to the allegations, my money is on a settlement - and the fact that it's David Jones, who are probably very sensitive to adverse publicity, I think probably enhances that possibility even more.''

Harmers represented Christina Rich against PricewaterhouseCoopers. Rich sought $11 million and settled for an undisclosed amount.

Thornton said she also suspected the extraordinary case might not make it to court. ''It's so far beyond anything that's ever been awarded, I think the company will be desperate to settle.''