A phrase with a racist word was spoken by the former chief executive of City firm Rosenblatt at a dinner celebrating the firm’s IPO, an employment tribunal in London heard on Friday.

The tribunal has begun hearing claims of racial discrimination, unfair dismissal and breach of contract brought by Noel Deans, who was head of employment at Rosenblatt until February 2020. RBL Law Limited, former chief executive Nicola Foulston, founder and senior partner Ian Rosenblatt, and director and compliance officer Anthony Field are named as respondents.

A judgment published in February states that the respondents admit in amended grounds of resistance that Foulston used a phrase with a racist word at a dinner in front of Deans, who is black. The February ruling states that the respondents deny the claimant was constructively dismissed and that he was subject to detriments or discrimination. They contend that the claimant’s dismissal was fair for a reason that related to his capability.

Cross-examining corporate partner Jon Lovitt on Friday, Deans told the tribunal the ‘IPO dinner’ was a celebratory dinner at founder Ian Rosenblatt’s house to celebrate the firm's imminent listing. ‘Spirits were high. The message on the ground was we were going to make some money, some people were going to make more than others, and everyone was in a very good mood,’ Deans said.

‘You say that when Nicola Foulston used the [phrase with the racist word], you say that was referenced in relation to an issue that she was bringing to our attention. What issue was that?’ Deans asked.

Lovitt told the tribunal he could not recall. ‘Was there an issue that warranted use of that language?’ asked Deans. ‘I have no idea, I did not use that language,’ replied Lovitt.

The tribunal heard that Lovitt’s witness statement said Ian Rosenblatt leant back in his seat, looked at Foulston and said words to the effect of 'you cannot say things like that in this day and age’.

Deans suggested Rosenblatt’s movements showed laughter on display.

‘That’s incorrect, he did not laugh,’ replied Lovitt. After being admonished by Rosenblatt, ‘Nicky then realised what she said was inappropriate. But then she moved on in her speech’.

Deans replied: ‘If this all happened very quickly and everyone just moved on, does that not suggest to you that very few people in the room, in the room with a largely significant number of partners, I’m the only black guy in the room, for everyone to move on fairly quickly that would suggest that Ian was not as offended by it as he is now suggesting and neither was anyone else?’

Lovitt disagreed.

During cross-examination, Deans submitted that when the employment team assisted with aspects of a corporate deal, Lovitt never approached Deans and went to more junior members instead. Lovitt said that was incorrect.

Lovitt was briefly cross-examined by Littleton Chambers’ Dr James Bickford Smith, counsel for Foulston. ‘When the claimant says he would be the only partner singled out and this was because he was black, do you agree with that?’ asked Bickford Smith. ‘That is completely untrue,’ Lovitt replied.

The hearing continues.

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