Miss Malcolm answered the phone at work one day to find a model of a penis, made of Blu-Tack, stuck to the receiver. Colleagues asked her whether it was to scale.
She was shocked on later answering the phone to find another model penis with replica pubic hair. The tribunal ruled that she should receive £25,000 from the council for injury to her feelings, £12,500 for psychiatric injury and £25,603 for loss of earnings. Interest at eight per cent from 2001, plus a sum for loss of pension rights, will take the final total beyond £100,000.
After taking the case to a tribunal in 2002, a series of hearings took place the next year, but her claims were dismissed. In 2005, a new tribunal heard the case again, and there were three further hearings over the next three years.
A spokesman for Dundee City Council said: "We are studying the judgment thoroughly."
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