Kellen Bennett, a transgender, has filed a lawsuit against Alliant International University for workplace discrimination and failure of promotion.
He also sued his lecturers at the university's California School of Professional Psychology, San Francisco - Dr. Elizabeth Milnes and Dr. Gregory Wells. The case was filed December 2012.
Bennett pursued his Ph.D. in clinical psychology at the university from August, 2006 to October 2011. Throughout his studies, he secured good grades, reviews and recommendations until he revealed his transgender status to his classmates and a faculty member in a group session in 2011.
Bennett alleges that everything changed since then.
His lecturer, Dr. Elizabeth Milnes, told his supervisors, peers and fellow students to avoid him and repeatedly addressed him as 'tranny' in front of them.
As a result, Bennett's reviews turned negative and he lost the promised postdoctoral internship at the university.
However, he received his Ph.D degree from the university.
Bennett has been living as a man for 13 years after undergoing sex-reassignment surgery.
Speaking in defence, Alliant vice president Jennifer Wilson told The Examiner, "We pride ourselves on our diversity. We would never condone transgender discrimination."
Theresa Sparks, a transgender woman, who serves as a chair at San Francisco's Human Rights Commission told the newspaper that using the word "tranny" in front of a transgender person is similar to using the n-word in front of black people.
Sparks said that the word signifies a negative term, which usually refers to harassment or bullying. Generally, transgender people always face unemployment, health care and housing issues.