Yakima, Wash. — In a significant legal adjustment, a federal judge has significantly reduced a punitive damages award against United Parcel Service in a case involving allegations of workplace discrimination and wrongful termination. The initial jury verdict, which sided with former UPS driver Tahvio Gratton, awarded him $237.6 million. However, after further judicial review, the punitive damages were cut down to $39.6 million.
The judicial review was prompted by UPS’ appeal, addressing the excessive nature of the punitive award decided by the jury. US District Judge Thomas Rice, ruling on the matter, deemed the original punitive sum to be unreasonable, leaving the compensatory damages for emotional distress intact at $39.6 million.
The controversy began when Gratton was dismissed from his position at UPS in October 2021 after a five-year tenure. The dismissal followed an investigation into an incident where Gratton was accused of inappropriate conduct towards a female coworker on a loading dock. Despite Gratton’s immediate apology for the misunderstanding, he contended that his firing was unjust and stemmed from ongoing grievances related to racial discrimination at the workplace.
Gratton’s legal action against UPS painted a picture of systemic bias, highlighting experiences where he was allegedly passed over for preferred route assignments in favor of less senior drivers, received less desirable trucks and routes compared to white counterparts, and faced derogatory remarks from supervisors.
One particularly contentious point in Gratton’s allegations included the repeated use of the term “boy” by a younger white supervisor, who defended his language as a regional vernacular customary to his Southern upbringing. This, Gratton argued, was indicative of the discriminatory culture he had to endure.
UPS has contested the decisions since the jury’s verdict on September 12, arguing for a new trial to overturn the remnant of the legal conclusions. The company’s further reactions to the judge’s recent reduction of punitive damages have yet to unfold fully.
The legal discourse around this case highlights important questions regarding workplace equality, the adequacy of internal corporate investigations, and the judicial system’s role in addressing and redressing issues of discrimination.
As the aftermath of the court’s latest decision continues to evolve, the broader implications for corporate accountability and the standards of punitive damages in discrimination cases will likely come into sharper focus. Meanwhile, parties representing Gratton have yet to comment on the development.
The case, Gratton v United Parcel Service Inc., continues to be deliberated in the U.S. District Court for the Eastern District of Washington, under case number 22-03149.
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