ALBAWABA - A jury has reached a $25.6 million verdict in favor of Shannon Phillips, a former Starbucks regional director who sued the company for wrongful termination, alleging that she was fired based on her race.
Phillips, who managed a region of stores for approximately 13 years, was terminated following the controversial arrest of two Black men at a Philadelphia Starbucks in April 2018.
The New Jersey jury unanimously ruled after a six-day trial, awarding $25 million in punitive damages and $600,000 in compensatory damages, as stated by Console Mattiacci Law, the legal representation for Phillips. Additionally, Phillips will be seeking back and front pay.
Starbucks expressed disappointment in the decision and is currently evaluating its next course of action, according to spokesperson Jaci Anderson. The verdict represents the latest development in an incident that sparked widespread protest and outrage. The two men involved in the 2018 arrest reached settlements with Starbucks and the City of Philadelphia after they were asked to leave the coffee shop for sitting at a table without making a purchase. The store manager subsequently called the police, leading to their arrest.
Phillips initially filed the lawsuit in 2019, alleging that Starbucks discriminated against her based on her race when she was fired. The lawsuit claimed that, in response to the arrests, Starbucks took punitive actions against White employees who were not involved in the incident but worked in and around Philadelphia. The company's aim was purportedly to convince the community of its appropriate response to the situation.
According to Phillips, who oversaw areas including Philadelphia at the time, Starbucks instructed her to place a White employee on administrative leave based on allegations of discriminatory behavior that she believed to be inaccurate. Phillips argued that her defense of the employee led to her own dismissal by the company.
The stated reason for Phillips' termination, as mentioned in the complaint, was that "the situation is not recoverable." However, the lawsuit contended that this justification was a pretext for race discrimination, asserting that her race played a motivating and/or determinative role in Starbucks' discriminatory treatment.
Starbucks, which previously denied these allegations, stated in a 2021 court filing that Phillips demonstrated a "complete absence of leadership" during the crisis, as observed by senior leaders and members of Partner Resources. The company argued that Phillips appeared overwhelmed and lacked awareness of the gravity of the situation. According to Starbucks, her dismissal was attributed to the need for strong leadership during that challenging period.
The verdict in Phillips' favor serves as a significant outcome in her racial discrimination lawsuit against Starbucks. It highlights the importance of fair treatment and unbiased decision-making in the workplace, emphasizing the potential legal consequences that companies may face for discriminatory actions. This case also underscores the ongoing need for organizations to foster inclusive and supportive environments for their employees
