Federal Judge Slashes $198 Million in Damages from UPS Lawsuit Verdict, Upholds $39.6 Million for Emotional Distress

Yakima, WA — A former Black employee of United Parcel Service (UPS) was awarded a substantial sum in damages after alleging racial discrimination and wrongful termination, although a significant portion of the original jury verdict was later reduced by a federal judge.

Tahvio Gratton, the former UPS employee, won a $238 million jury decision in September, but Judge Thomas Rice has since deemed $198 million in punitive damages to be unsupported by the evidence, leaving Gratton with $39.6 million for emotional distress.

The case stemmed from several complaints Gratton filed from 2018 to 2021 with his union and the Equal Employment Opportunity Commission. He claimed he faced racial discrimination from his supervisors and was unfairly dismissed under the guise of a sexual harassment investigation.

Gratton argued his 2021 termination occurred following an inquiry into an incident where he allegedly touched a female employee inappropriately. He contended this accusation was used by already biased managers to dismiss him. During his tenure, Gratton also reported being given less favorable work assignments than his white counterparts and enduring derogatory racial comments, such as being repeatedly called “Boy” by a white manager.

The court heard that Gratton had been “laid off” for the day while less senior white drivers were given routes — a violation of union rules, according to Gratton’s claims. He also alleged receiving older trucks and less desirable routes compared to others.

While UPS conducted an investigation into the harassment allegation, led by a neutral third-party investigator, Judge Rice found no evidence of bias in this process. The investigator’s report acknowledged the testimony of Linda Hernandez, who described Gratton’s conduct as disrespectful and harassing.

Despite these findings, Rice ruled that Leyert, the labor manager in charge of reviewing the union grievances, was not influenced by racially biased supervisors as claimed by Gratton. The judge noted that Gratton was able to present his account, had union representation during the proceedings, and introduced his witnesses.

While the judge vacated the punitive damages due to lack of reasonable support, he did not challenge the emotional distress damages, for which UPS has expressed intentions to seek a retrial.

This case, significantly highlighting issues of racial discrimination and workplace justice, concluded with the reduced award standing, but not without raising questions about the measures companies take to ensure unbiased investigations and fair treatment.

Judge Rice also denied Gratton’s claim for lost wages, indicating insufficient evidence was presented at trial to support these claims. Gratton did not win his request to be reinstated at UPS, largely because of his successful barbecue business established post-termination.

In light of the reduced punitive damages and the upheld emotional distress award, UPS has committed to pursuing further legal actions to possibly overturn the remaining award.

Legal representatives for Gratton have yet to respond to requests for commentary regarding the judge’s decision.

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