The ASX-listed Super Retail Group has been battling court cases brought against it by former employees who have accused the company’s senior executives, including CEO Anthony Heraghty, of improper behaviour and bullying, has faced a significant legal setback.

Two former Super Retail executives – the company’s legal head Rebecca Farrell and her colleague Amelia Berczelly – who are suing the company over the terms of their dismissal have won a battle to retain their legal counsel, Harmers Workplace Lawyers.

Farrell lodged a claim in the Federal Court against Super Retail on July 29 after failed mediation. She is also suing Heraghty and outgoing chairwoman Sally Pitkin after alleging that the CEO had an undisclosed affair with the company’s former head of human resources, and that she suffered bullying and harassment.

Her former colleague Berczelly has lodged a separate but related claim.

Both are represented by Harmers which is reportedly billing an estimated $1 million, the court has heard.

Super Retail had sought to get Harmers barred from the case, arguing that Harmers was conflicted and failed to advise its clients about the defamation risk of a media statement it issued regarding the suit. The women were subsequently fired from their roles on May 3.

Justice Michael Lee said in his oral judgment on Wednesday it would be “far from an insignificant thing” to bar them the representation of their choice, reported the Australian Financial Review.

 

Farrell and Berczelly told the court earlier this week they wished to retain Harmers in the hearing due to start on December 10.

Justice Lee also said the proceedings have caused “real vexation and stress” and an adverse ruling over their solicitor would likely exacerbate this.

He added that it was not his job to decide if anyone associated with Super Retail was backgrounding journalists, or comment on whether Harmers’ approach to issuing its media statement was the right thing to do.

Preliminary steps threatening to sue Harmers and the two women for defamation have been taken by Super Retail and its board.

Justice Lee cautioned that his judgment has no bearing on how successful those actions may be.

He also believed the two women sought to protect their interests following the unsuccessful mediation which led Super Retail to make a pre-emptive statement to the ASX in late April about an anticipated workplace claim estimated at $30 million-$50 million. The two women were not identified at the time.

Despite its legal woes, Super Retail Group posted record sales of $3.9 billion for the full year ended 29 June 2024, up 2.1 per cent year-on-year.

The group is one of Australia’s largest retailers and owner of chains including Rebel, Supercheap Auto, Macpac and Boating, Camping and Fishing (BCF).