Starbucks had to pay out the big bucks after losing a lawsuit against a regional manager, who claimed the corporation fired her for being white. This came after considerable national backlash due to the arrest of two Black men at one of its Philadelphia stores. As a result of the win, the woman was awarded a massive $25.6 million in damages.
The lawsuit dates back to 2019 when the woman in question, Shannon Phillips, sued the Seattle-based coffee franchise for her unjust firing, per Fox Business. Phillips had worked for the company for 13 years and was responsible for nearly 100 cafes owned by Starbucks.
Phillips was fired less than a month after the company received significant backlash calling the cops on Donte Robinson and Rashon Nelson, who refused to leave a table. Notably, Phillips was not present at the location when the incident occurred.
The whole incident was captured by a bystander and quickly spread across social media, prompting a significant backlash against the company for what seemed like a racially motivated move. Starbucks responded by closing 8,000 stores early for racial bias training and apologized to the two men in question.
Despite not being involved in the incident, Phillips got caught in the crossfire and was terminated in what her lawyer, Attorney Laura Mattiaci, referred to as a “sacrificial lamb,” per Law360.
During the trial, Mattiaci spoke on how Phillips was well-liked and respected by her colleagues, specifically using the testimony of district manager Paul Sykes, a black man who worked under the former Starbucks employee.
Sykes said that the termination came entirely out of the blue and likely was because of her skin color.
"This was all about the appearances, the optics of what they did," Mattiacci said. "If Shannon Phillips is Black, does it play out like this? This case is about Starbucks and self-preservation."
The attorney representing Starbucks, Richard Harris, argued that the firing of Phillips had nothing to do with race, instead attacking her leadership ability during a time of crisis. Harris also noted how the regional director who replaced Phillips was also White.
"A peacetime leader is very different from a wartime leader. These were turbulent times. Starbucks needed someone to show strength and resolution," Harris told the panel.
The eight-member panel convened for nearly five hours before ultimately deciding in favor of Phillips, awarding her $25 million in punitive damages and another $600,000 in compensatory damages. They had decided that her skin color had undoubtedly played a role in her untimely termination.
Racism applies to all people of all races, not just those of minority groups. Hopefully, Starbucks learned its lesson here.
The lawsuit dates back to 2019 when the woman in question, Shannon Phillips, sued the Seattle-based coffee franchise for her unjust firing, per Fox Business. Phillips had worked for the company for 13 years and was responsible for nearly 100 cafes owned by Starbucks.
Phillips was fired less than a month after the company received significant backlash calling the cops on Donte Robinson and Rashon Nelson, who refused to leave a table. Notably, Phillips was not present at the location when the incident occurred.
The whole incident was captured by a bystander and quickly spread across social media, prompting a significant backlash against the company for what seemed like a racially motivated move. Starbucks responded by closing 8,000 stores early for racial bias training and apologized to the two men in question.
Despite not being involved in the incident, Phillips got caught in the crossfire and was terminated in what her lawyer, Attorney Laura Mattiaci, referred to as a “sacrificial lamb,” per Law360.
During the trial, Mattiaci spoke on how Phillips was well-liked and respected by her colleagues, specifically using the testimony of district manager Paul Sykes, a black man who worked under the former Starbucks employee.
Sykes said that the termination came entirely out of the blue and likely was because of her skin color.
"This was all about the appearances, the optics of what they did," Mattiacci said. "If Shannon Phillips is Black, does it play out like this? This case is about Starbucks and self-preservation."
The attorney representing Starbucks, Richard Harris, argued that the firing of Phillips had nothing to do with race, instead attacking her leadership ability during a time of crisis. Harris also noted how the regional director who replaced Phillips was also White.
"A peacetime leader is very different from a wartime leader. These were turbulent times. Starbucks needed someone to show strength and resolution," Harris told the panel.
The eight-member panel convened for nearly five hours before ultimately deciding in favor of Phillips, awarding her $25 million in punitive damages and another $600,000 in compensatory damages. They had decided that her skin color had undoubtedly played a role in her untimely termination.
Racism applies to all people of all races, not just those of minority groups. Hopefully, Starbucks learned its lesson here.
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