Philadelphia: A federal court jury has granted $25.6 million in damages to a former Starbucks regional manager who claimed that she and other white employees faced unjust consequences following the well-known arrests of two Black men at a Philadelphia store in 2018.
Shannon Phillips was awarded $600,000 as compensatory damages and $25 million as punitive damages, as the jury in New Jersey determined that her termination was influenced by her race, thus violating federal and state laws against discrimination.
In April 2018, the manager of a Starbucks in Philadelphia alerted the authorities after two Black individuals were found seated in the coffee shop without having placed an order.
Racial discrimination surged lawsuits
According to the lawsuit, Phillips claimed that she was terminated less than a month later for objecting to the decision of placing the manager on leave during the public outcry.
It stated that Starbucks justified the suspension of the district manager, who had no responsibility for the store where the arrests occurred, by alleging pay disparities between Black and white store managers. However, Phillips argued that this reasoning was illogical since district managers had no influence over employee salaries.
The lawsuit further alleged that Starbucks was deliberately targeting white employees in the region as a means to demonstrate to the community that it had appropriately responded to the incident, instead of addressing the actual issue.
During the closing arguments, Phillips’ attorney, Laura Mattiacci, informed the jurors that the company was seeking a “sacrificial lamb” to appease the public outrage and portray a sense of action. According to Law360, she stated that selecting a Black employee for such a purpose would have backfired.
Lawsuit filed against the manager
Starbucks refuted Phillips’ claims and asserted that they needed an individual with a proven track record of “strength and resolution” during a crisis. According to Law360, the company replaced her with a regional manager who possessed relevant experience, including managing the aftermath of the 2013 Boston Marathon bombings.
Phillips’ lawyer, on the other hand, referenced testimony from a Black district manager, responsible for the store where the arrests occurred, who spoke highly of Phillips and described her as highly regarded by her colleagues. The district manager also mentioned that Phillips worked tirelessly following the arrests.
Confirming the awarded amount, Phillips’ attorney, Mattiacci, stated in an email to The Associated Press that the judge would consider additional compensation for back pay, future pay, and attorney’s fees. Mattiacci also informed the New Jersey Law Journal that she intends to pursue approximately $3 million for lost wages and approximately $1 million in attorney’s fees. Starbucks declined to comment on the matter on Tuesday.
The 2018 incident of Starbucks
In April 2018, an incident took place at a Starbucks coffee shop near Philadelphia’s upscale Rittenhouse Square. The store manager called the police after two men, Rashon Nelson and Donte Robinson, refused to make a purchase or leave the premises. The men were subsequently arrested but later released without any charges filed against them.
The arrest, captured on video, sparked widespread public outcry and prompted the CEO of Starbucks at the time to personally apologize to Nelson and Robinson. In a settlement agreement, the company offered them an undisclosed sum of money and the opportunity to pursue a college education free of charge. Starbucks also implemented policy changes and temporarily closed numerous locations across the country to provide racial-bias training for its employees.
Although Phillips, who served as the regional manager of operations in Philadelphia, southern New Jersey, had no involvement in the arrests, she claimed in her lawsuit that she was instructed to place an uninvolved white manager on administrative leave based on false reasons.
