Danielle Morris, 34, has faced the prospect of losing her job throughout a three-and-a-half-year investigation following the off-the-cuff remark.
Finally, in a ruling made public today, the Solicitors Regulation Authority (SRA) has fined her £2,500 and ordered her to pay £5,250 in costs.
They issued no further disciplinary sanctions, ruling the remarks were “foolish and ignorant rather than malicious”.
However, the incident is believed to have costs tens of thousands more in legal fees and compensation after a Jewish member of staff overheard the comments and took her bosses to tribunal.
Mrs Morris, who now works part time at another practice, claimed in her defence that she had no idea there was a history of discrimination against Jews.
The incident began when the mother-of-two took one of her children to the doctor and a man in Orthodox Jewish dress "caused a scene" and was seen first, the panel heard.
She later relayed her experience to a receptionist at her law firm, stating: "I cannot stand Jewish people."
A Jewish cashier in the office complained: "Please do not say that", but Mrs Morris added: "I don't care, I cannot stand them."
The cashier, named only as Mrs S, made a formal complaint to Lancashire based firm Mulderiggs - where Mrs Morris was working her notice as a junior solicitor after being made redundant – and received a written apology.
Five days after the incident on December 4 2009 Mrs S left the law firm and brought a racial and religious discrimination claim against Mrs Morris and the practice.
In May 2011 she was awarded an undisclosed sum in damages after the employment tribunal ruled in her favour.
A year later Mrs Morris was called before a second panel, this time at the SRA.
Mr Edwards said Mrs Morris had tried to apologise, but it had not been accepted.
He said his client had "not been aware" of the long history of the persecution of Jewish people.
She later relayed her experience to a receptionist at her law firm, stating: "I cannot stand Jewish people."
A Jewish cashier in the office complained: "Please do not say that", but Mrs Morris added: "I don't care, I cannot stand them."
The cashier, named only as Mrs S, made a formal complaint to Lancashire based firm Mulderiggs - where Mrs Morris was working her notice as a junior solicitor after being made redundant – and received a written apology.
Five days after the incident on December 4 2009 Mrs S left the law firm and brought a racial and religious discrimination claim against Mrs Morris and the practice.
In May 2011 she was awarded an undisclosed sum in damages after the employment tribunal ruled in her favour.
A year later Mrs Morris was called before a second panel, this time at the SRA.
Initially she denied the comment, but her lawyer Gareth Edwards later admitted it was "unintentionally discriminatory remark which arose from foolishness and ignorance, not wickedness".
Mr Edwards said Mrs Morris had tried to apologise, but it had not been accepted.
He said his client had "not been aware" of the long history of the persecution of Jewish people.
He added: "Because of her age she has had limited direct contact with those who had been familiar with the discovery of the horrors of the holocaust or the attitudes which had led to these events.”
She had no intention of causing offence, he told the panel.
Mrs Morris, who works part time as conveyancing lawyer, argued she was a woman of modest means, living in a house worth £105,000 with equity of just £30,000.
In their decision panel chairman Ken Duncan said they accepted Mrs Morris had tried to apologise on three occasions, but criticised her for not saying sorry on the day and not writing a personal letter of apology.
Mr Duncan said: "What she had said was inappropriate and offensive however it occurred on one occasion only. This was not a situation in which there had been repeated or sustained discrimination.
"The tribunal took into account the fact that the events in issue had taken place over three years ago and she had been under the threat of potentially losing her career for that period.”
Alongside the £7,750 she was ordered to pay by the panel her legal costs are thought to be £1,000.
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