Driving school boss who made sexist, racist and homophobic remarks loses £2million court battle with instructors
John Benson was ruled to have bullied Benson School of Motoring staff.
The High Court heard he called one instructor a 'wrinkled old bag' and a Chinese instructor a 'p**sy chow mein'.
Instructors were tied to long contracts with the firm in Braintree, Essex.
Some 20 quit in 2020 and sued to be released.
Benson, 64, counter-sued, claiming damages of almost £2million.
But judge Mr Justice Freedman ruled the instructors must be released from their contracts without any liability.
Ex-instructor Janine Rusted, 57, of Great Chesterford, Essex, said afterwards: 'It was John's way or the highway.'
A hearing to determine costs will take place later.
Joanthan Hodge, consultant solicitor at Aquabridge Law which represented the claimants, commended the instructors for their 'bravery' in taking on Benson.
He told The Sun: 'My clients spent five years litigating against the Benson School of Motoring in the High Court, and sought no compensation.
'All they wanted was to be released from an environment in which John Benson controlled them through fear and intimidation.
I'm a driving instructor and here is how to avoid failing your test
'When presented with their claims, Mr Benson engaged a large team of lawyers who brought counterclaims against my clients for millions of pounds – all of which were dismissed.
'My clients could only sustain this hard-fought case by sticking together.
"The judgment identifies their bravery in standing up to Mr Benson, confirming their fears were well placed.'
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