TORONTO - Former Penguin Canada president David Davidar, who was asked to quit his post amid allegations of sexual harassment, says he had a "flirtatious relationship" with a former employee that was consensual.

A three-page statement issued by lawyer Peter Downard on behalf of Davidar denies any wrongdoing in his relationship with Lisa Rundle, the company's former rights and contracts director.

Rundle filed legal action against Davidar alleging sexual harassment that she says involved a steady progression of "leering and suggestive comments" that culminated with Davidar forcing her to kiss him during a business trip to Germany.

"David Davidar has not sexually harassed anyone," Downard countered in the statement.

"He has not assaulted anyone. David Davidar had a consensual, flirtatious relationship that grew out of a close friendship with a colleague. He deeply regrets the hurt this has caused his wife."

Downard says Davidar and Rundle became friends in late 2005 when they had neighbouring offices at Penguin. He says their relationship grew closer when Rundle invited Davidar to play tennis at her tennis club. They subsequently went to a tennis tournament together, attended the theatre and went out to lunch.

Downard says the pair kissed twice, and that the kisses were consensual. The first was at the October 2009 Frankfurt Book Fair referred to in Rundle's claim. Two days later, he says they kissed again after sharing dinner at a restaurant.

"She did nothing to convey to Mr. Davidar that this attention was unwanted," says Downard.

The account stands in stark contrast to Rundle's statement of claim, in which she says Davidar insisted Rundle stay at the same hotel as him and then pushed his way into her room where he "kept asking for a kiss."

Her statement says Rundle feared for her employment and personal safety to an extent where she had panic attacks and began taking anti-anxiety medication.

It says Rundle filed a complaint with Penguin management regarding three years of sexual harassment in March 2010. It also goes on to say she was "suddenly terminated" after a conversation between the vice president of human resources and her legal counsel in May.

Rundle's statement of claim and the allegations in Downard's statement have not been proven in court.

Downard suggests that Rundle's complaints to Penguin management coincided with Davidar's decision to terminate their flirtatious relationship earlier this year.

He says that in January 2010, Rundle asked Davidar for a raise and he promoted her to a new position with a $10,000 pay increase. But soon afterwards, Davidar decided to confine their relationship to business as he took "stock of his life" in the wake of his father's recent death.

Within weeks, Downard says Rundle no longer wanted her new position and complained to Penguin management about inappropriate behaviour.

"Throughout Ms. Rundle's employment with Penguin she had the opportunity to complain of any alleged sexual harassment by anyone," said Downard.

In a statement issued earlier this month, Penguin Canada said Davidar was asked to leave the company and that his departure was announced June 8.