Extraordinary court battle erupts over trans woman who demanded $50,000 in damages after prison officers called her 'him' and 'he' behind bars

An extraordinary row has erupted over a human rights ruling centered on a transgender woman who objected to being called 'he' in prison.

Leilani Tafao, 41, still has a penis after a partial gender reassignment surgery in 2002 but identifies as female and has lived as a woman since she was 13.

When the Samoan-born woman was jailed in the Southern Queensland Correctional Centre for break and enter in 2015, she took exception to being called 'he' and 'him' by prison guards and took her case to a tribunal. 

After hearing the case the Queensland Civil and Administrative Tribunal (QCATA) passed a landmark ruling stating that transgender prisoners should be referred to by their desired pronouns to keep in line with strict anti-discrimination laws.  

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Leilani Tafao (pictured), 41, still has a penis after a partial gender reassignment surgery in 2002 but identifies as female and has lived as a woman since she was 13

However, prison operator Serco and the government have both applied to overturn the ruling which found them - along with Southern Queensland prison director Mark Walters - liable for indirect discrimination against Ms Tafao. 

Both parties have also asked the court for an order to they don't have to apologise to Ms Tafao until the outcome of the appeal has been decided.

Ms Tafao had sought $50,000 in damages claiming that being called 'him' or 'he' had left her suicidal.

But the tribunal ruled against the payment because they was no 'bad faith' by the state government or the prison operator.

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Prison operator Serco and the government have both applied to overturn the ruling which found them - along with Southern Queensland prison director Mark Walters (pictured) - liable for indirect discrimination against Ms Tafao

Ms Tafao is listed as male on her Samoan birth certificate and female on her passport from New Zealand, and has taken hormone replacements since she was 15 years old.

She previously served time in a New Zealand female prison but transferred to a male facility as it was 'easier to get along with men'.  

While detained at the Southern Queensland Correctional Centre Ms Tafao asked to be referred to as 'her' while serving time in 2015, it also heard, but was called a 'him' and 'he' by the guards. 

She was also criticised for skipping, wearing flowers in her hair, being sexually flirtatious on occasion as well as displaying feminised behaviour behind bars. 

Ms Tafao was also placed on discriminatory intensive management plans (IMPs) leading up to her release in 2015.

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While detained at the Southern Queensland Correctional Centre (pictured) Ms Tafao asked to be referred to as 'her' while serving time in 2015, it also heard, but was called a 'him' and 'he' by the guards

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Ms Tafao (pictured) had sought $50,000 in damages claiming that being called 'him' or 'he' had left her suicidal

'Leave is necessary to correct a substantial injustice on the basis that the decision has the capacity to negatively impact the safety and good order of prisons by erroneously limiting the ability of those operating a corrective services facility ... to determine the mode of address of a transgender prisoner,' the State of Queensland's appeal filing states, The Courier-Mail reported. 

Serco and Mr Waters believe the court should have ruled referring to the trans prisoner as female could have put her safety at risk as well as compromised the 'good order of the prison'. 

They also believe QCATA's finding of discrimination should be overturned. 

A date is yet to be set to hear the appeals.