A WOMAN lawyer sexually discriminated against by council bosses was yesterday awarded £12,000 damages by three of England's most senior judges.

Margaret O'Donoghue began her marathon case against Redcar and Cleveland Borough Council in 1996 after being passed over for the job of senior solicitor in favour of a man, and was eventually sacked.

She sued the council for sex discrimination, victimisation and unfair dismissal and - after a lengthy series of hearings culminating in the Court of Appeal - she succeeded in all three claims.

But the substantial compensation she hoped for did not materialise as Mrs O'Donoghue was awarded just under £12,000, including £5,000 for injured feelings.

The council now faces legal costs likely to run into tens of thousands of pounds. Mrs O'Donoghue was only awarded 40 per cent of her legal bills.

Lord Justice Potter told the court Mrs O'Donoghue, a barrister, began working in Langbaugh Borough Council's legal department in 1989 before it was amalgamated into Redcar and Cleveland Borough Council in 1996.

When the post of senior solicitor for the new council was advertised, Mrs O'Donoghue was the only applicant, but was not shortlisted. She was shortlisted when it was advertised a second time, but a man was appointed.

An industrial tribunal in 1996 upheld her sexual discrimination claim because the man was less well qualified. After the hearing, she was suspended by the council and later dismissed.

Mrs O'Donoghue took the council to industrial tribunal a second time, alleging victimisation and unfair dismissal. It upheld both claims but only awarded her £8,805 damages, including £2,000 for injured feelings.

Her appeal to the Employment Appeal Tribunal against that part of the ruling was dismissed last year. It also upheld the council's appeal against an earlier decision that she had suffered sexual discrimination.

Lord Justice Potter yesterday upheld Mrs O'Donoghue's appeal to the extent that the sexual discrimination part of her claim was reinstated. The court increased her pay-out for injured feelings from £2,000 to £5,000, but otherwise the original award was unchanged.

Mrs O'Donoghue was refused permission to appeal to the House of Lords although she may petition the Law Lords directly for an appeal hearing