FedEx gets hit with $366 million verdict in race retaliation suit

A Texas jury has returned a verdict of more than $366 million to a former FedEx employee who said the package delivery giant engaged in retaliation because she complained about alleged racial discrimination. The award, which may be negated or reduced on appeal, includes $365 million in punitive damages.

Jennifer Harris alleged in her lawsuit that she was hired by FedEx as an entry-level inside sales representative in 2007.

She rose through the ranks, receiving six promotions and eventually rising to the rank of district sales manager. Her sales team was one of FedEx’s best, she alleged.

Things changed in March of 2019, she said, when a white supervisor asked her to accept a demotion. When Harris balked at the request, negative treatment of her escalated and her supervisor took away commissions that she earned, Harris alleged.

When she complained to HR of alleged discrimination, Harris added, FedEx responded by telling her that her job performance was subpar and then terminating her employment in January of 2020 after a “sham investigation.”

A white HR advisor allegedly said, “Just go on with your job, it’ll all blow over.”

In her suit, Harris said that “FedEx hires HR personnel who are not qualified to follow policies prohibiting discrimination and retaliation laws.” It does not adequately train and supervise its managers to make sure those policies are followed, she alleged.

Suit alleges retaliation

That shortcoming led to discrimination and retaliation against Harris, the suit asserted.

For more than a year, FedEx subjected Harris to harassment that was “constant, obscene, obnoxious, [and] shocking to the conscience of the ordinary person,” it added.

The suit alleged a violation of Section 1981, which guarantees an equal right to make and enforce contracts, including contracts of employment. The law also gives people the right to recover damages for retaliation, the suit said.

It requested declaratory relief, equitable relief, and damages including punitive damages.

After a jury trial ended and before the jury deliberated, the trial court judge issued the jury its instructions for deliberation.

Instructions: Here’s what to do

Those instructions noted the substance of Harris’ claims while also summarizing FedEx’s position: that Harris was let go due to subpar job performance. They also indicate that Harris further asserted a violation of Title VII.

To prove unlawful discrimination, the instructions advised, Harris had to show that she would not have been terminated but for her race. To win, she did not have to show that unlawful discrimination was the only reason for the decision to terminate her employment, they added.

To win on her retaliation claim, the court instructed, Harris had to show three things.

First, she had to prove that she engaged in protected activity (which was complaining about alleged discrimination). Second, she had to show that FedEx in fact terminated her employment. And third, she had to prove that she would not have been terminated if she did not engage in the protected activity.

As to damages, it explained that compensatory damages are awarded “to make the plaintiff whole,” while punitive damages are appropriate upon a finding of malice or reckless indifference.

Jury returns verdict

When the jury returned the verdict form, it answered “No” to the question of whether Harris sufficiently proved that FedEx would not have terminated her but for her race. In other words, it found for FedEx on the discrimination allegation.

However, it found for Harris on the retaliation allegation. It said FedEx would not have retaliated against her but for her claim of racial bias.

It then proceeded to award $170,000 for past pain and suffering as well as $1,040,000 for future pain and suffering.

The biggest blow came last, when the jury tacked on $365 million in punitive damages.

FedEx has already indicated its intent to appeal.