For years, Henri Bédirian felt that he was on track to climb the ranks at the federal Department of Justice. Already a senior manager in the Montreal office, Mr. Bédirian had his sights set on becoming the Quebec regional director.

That all ended on Feb. 2, 2000, when a young female lawyer who worked for him filed a sexual-harassment complaint, alleging that he had made "improper and inappropriate comments and propositions." After an internal investigation, Mr. Bédirian was demoted and suspended without pay for three days.

Mr. Bédirian hit back and launched what has become an unprecedented legal battle. The dispute has involved the deputy minister, two dozen other officials and countless hours of testimony before the Public Service Labour Relations Board and the Federal Court of Canada.

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In 2002, the public service board dismissed the harassment complaint and ruled that the department had acted improperly. Mr. Bédirian returned to his post and was reimbursed for the lost pay during the suspension. The department also eventually paid him $102,250 to cover his legal costs. But Mr. Bédirian pressed for more.

He filed a claim for $1.75-million in damages, arguing that the ordeal, and the department's clumsy handling of the case, had ruined his reputation and left him emotionally damaged.

The department argued that it handled the case as best it could, and that any further payment was unnecessary. It noted that the Montreal office had been singled out for poor morale and complaints about discrimination by female staff in the late 1990s.

The claim for damages ended up back at the public service board, and in a recent decision, it rejected Mr. Bédirian's case. The board ruled that while he had certainly suffered as a result of the allegations, he did not make a strong enough case to warrant additional compensation. Mr. Bédirian has appealed the ruling, ensuring that it will continue for many more months.

Mr. Bédirian, who has worked in the department for 29 years, declined to comment when reached at his office. But he told the public service board that he had "spent five years in hell."

He said the ordeal had cost him his marriage, damaged his health and left him with bouts of depression. And, he said, he felt isolated within the legal community. "I've been branded," he told the board.

He said the department compounded the situation by hiring consultants in 2001 to assess the Montreal office. Their report, titled "Toward a respectful workplace," cited his case and said it had caused unease in the office.

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The department argued at the board that the Montreal office had a "clouded workplace atmosphere" for several years, and that deputy minister Morris Rosenberg was determined to clean it up. While Mr. Bédirian had never been singled out before as a problem, the department said it had a duty to diligently investigate the allegations.

It also defended the consultants' report, arguing that Mr. Bédirian was not identified in it and that its conclusions were legitimate. "The employer very much regrets the situation for everyone involved," lawyers for the department told the tribunal.

"It found itself between the devil and the deep blue sea. It did its best."