  We report the detection of high linear polarization in the bright Seyfert 1
galaxy ESO 323-G077. Based on optical spectropolarimetry with FORS1 at the VLT
we find a continuum polarization which ranges from 2.2 % at 8300A to 7.5 % at
3600A. Similar amounts of linear polarization are found for the broad emission
lines, while the narrow lines are not polarized. The position angle of the
polarization is independent of the wavelength and found to be perpendicular to
the orientation of the extended [OIII] emission cone of this galaxy. Within the
standard model of Seyfert nuclei the observations can be well understood
assuming that this AGN is observed at an inclination angle where the nucleus is
partially obscured and seen mainly indirectly in the light scattered by dust
clouds within or above the torus and the illuminated inner edge of the dust
torus itself. Hence we conclude that ESO 323-G077 is a borderline Seyfert 1
galaxy which can provide important information on the geometric properties of
active nuclei.
