Merrill facing claim of sex bias

TOP BRASS at Merrill Lynch are on stand-by to swap their executive offices for the less salubrious surroundings of Croydon as one of the highest-profile sex discrimination cases to hit the English judicial system gets under way next week.

With one City employment lawyer who works regularly for the US bank talking of 'at least seven-figure sums involved', Stephanie Villalba's claim against her former employer Merrill Lynch could break all UK records for a sex discrimination claim.

Villalba, 42, the former head of Merrill's European private-client financial advisory business, which targets the super-rich, is the highest-ranking bank executive to bring a sex bias claim in this country. The Croydon employment tribunal has set down 30 days to hear her case, starting on Monday.

Those understood to be on call to give evidence include Villalba's superiors Ausaf Abbas, who is the former chief of Merrill's private-client business in Japan, and Singapore-based boss Raymundo Yu, head of the private-client operation outside the US and chairman of Merrill Lynch Asia Pacific.

Kelly Martin, the former head of Merrill's US private-client business who is now chief executive of Irish drugs company Elan, and Phil Sieg, another senior executive in Merrill's private-client business, may also appear.

Villalba is thought to have been on more than £1m a year at Merrill. The company has hired City law firm Lovells to fight its corner.

Villalba had a 17-year career with the bank and in May 2002 was promoted to look after its most important private banking clients in Europe. She added Britain and Ireland to her remit three months later but was made redundant last August.

She responded with claims of unfair dismissal and pay and sex discrimination against Merrill Lynch Europe, Merrill Lynch & Co and Merrill Lynch International.

Villalba has filed a separate case against Merrill in the High Court, demanding the bank hands over e-mails, files and other personal data. That case is due to be heard later.

The biggest City discrimination case payout so far was £1.4m by Schroder Securities to former analyst Julie Bower in 2002.