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The U.S. Supreme Court on Monday declined to review the Fifth Circuit's decision to significantly reduce a $366 million jury verdict awarded to Jennifer Harris, a Black former FedEx employee. Harris had argued that the appellate court improperly narrowed the window for filing her race discrimination and retaliation claims.

FedEx $366M Race Bias Verdict : Verdict Reduction and Legal Battle

Harris, who worked for FedEx for over a decade, initially won the massive verdict after a jury found in her favor, awarding her $365 million in punitive damages alongside compensation for pain and suffering. However, in February, the Fifth Circuit drastically cut the award to just $249,000, stating that her claims under Section 1981 of the Civil Rights Act of 1866 should not have gone to trial due to a six-month limitation clause in her employment contract.

Harris had petitioned the Supreme Court to overturn the Fifth Circuit's ruling, arguing that the appellate court ignored precedent set in Burnett v. Grattan (1984). That ruling found that a six-month time limit on Civil Rights Act claims was insufficient to allow plaintiffs to adequately prepare their cases, as the law typically offers a four-year statute of limitations.

FedEx $366M Race Bias Verdict : The Case's Background

Harris' lawsuit stemmed from her termination in January 2020, which she claimed was motivated by racial discrimination and retaliation. She filed suit in May 2021, about 16 months after being let go. Harris had alleged that a manager had asked her to take a demotion in 2019, and when she reported the incident to human resources, FedEx failed to investigate. Instead, she said, she faced further retaliation, including discipline and ultimately termination for alleged poor performance.

During a seven-day trial in 2022, a jury sided with Harris, awarding her $366 million, which included punitive damages, past pain and suffering, and future mental anguish. However, FedEx appealed, claiming that the evidence presented did not support such a large verdict and that Harris' claims were time-barred by the contract's six-month limitation.

Impact of the Fifth Circuit Ruling

The Fifth Circuit agreed with FedEx, ruling that the six-month limitation in Harris' employment contract knocked out her Section 1981 claims. The panel noted this was crucial, as Title VII of the Civil Rights Act has a cap on damages, while Section 1981 does not. As a result, Harris' compensatory damages were reduced to the statutory cap of $300,000 under Title VII.

In her petition to the Supreme Court, Harris also sought clarification on a circuit split regarding the "maximum recovery rule." She argued that the Fifth Circuit improperly applied the rule, which limits compensatory damages, by focusing on proportionality to other cases rather than the quality of evidence, a method used by several other circuits.

Supreme Court Declines to Intervene

The Supreme Court, in a brief order list, denied Harris' petition for certiorari, effectively upholding the Fifth Circuit’s ruling. The decision means that the $249,000 judgment, drastically reduced from the original $366 million, will stand.

Neither Harris' legal team, led by Brian P. Sanford of The Sanford Firm, nor FedEx's representatives, led by Kyle D. Hawkins of Lehotsky Keller Cohn LLP, immediately responded to requests for comment.