Kenny Faulk, a Black man, applied for a sales position at Dimerco Express USA. Although he was conditionally offered the job, Dimerco rescinded the offer after discovering he was Black, despite having a policy of hiring only Caucasian sales executives to attract a Caucasian market. The company had internal communications explicitly stating a preference for hiring white men. Faulk sued under 42 U.S.C. § 1981 for racial discrimination. A jury awarded him $390,000 in compensatory damages for lost wages and emotional distress, and $3 million in punitive damages. Dimerco moved for a new trial, arguing that Faulk's counsel engaged in misconduct by arguing the jury should act as 'teammates' and by improperly questioning a witness about excluded evidence. Dimerco also argued the damages were excessive. The district court denied these motions, and Dimerco appealed.
The Eleventh Circuit addressed four main issues. First, regarding counsel misconduct, the court found that while attorney Amanda Farahany's comments about 'passing a torch' and 'carrying a mantle' to the jury were improper, the district court did not abuse its discretion in denying a new trial. The trial judge immediately corrected the arguments in front of the jury and issued standard instructions that lawyers' statements are not evidence. The appellate court presumes juries follow these instructions and found no prejudice. Second, regarding evidentiary rulings, the court affirmed the exclusion of Faulk's 2019 arrest record for rape. The court agreed with the district court that because Faulk limited his emotional distress testimony to the time he learned of the discrimination, the arrest record had minimal probative value and posed a high risk of unfair prejudice under Federal Rule of Evidence 403. The court also found any error in excluding the 2014 arrest record for aggravated assault was harmless, as the jury heard testimony that the record existed. Third, the court analyzed the damages. For compensatory damages, the court found Faulk's testimony regarding his humiliation and career derailment was sufficient to support the award, citing precedent that a plaintiff's own testimony can sustain such damages. For punitive damages, the court applied the three 'Gore' guideposts. It found Dimerco's conduct 'exceedingly reprehensible' because it involved intentional malice, repeated actions, and a disregard for the law despite warnings. The court held that the 7.69-to-1 ratio of punitive to compensatory damages was not unconstitutionally excessive given the high degree of reprehensibility.
The original jury verdict stands, meaning Dimerco Express USA must pay the $390,000 in compensatory damages and $3 million in punitive damages, plus approximately $406,000 in attorney's fees. The decision reinforces that internal communications evidencing a racial hiring policy can support significant punitive damages, even when the company claims other reasons for a hiring decision. It also clarifies that immediate curative instructions by a trial judge are often sufficient to cure counsel misconduct, preventing automatic new trials for improper arguments.