Gratton v. UPS: How One Discrimination Case Led to a $237 Million Jury Verdict
Executive Summary: Jury Verdict in Tahvio Gratton v. UPS
In September 2024, a federal jury in Yakima, Washington awarded $237.6 million to former UPS driver Tahvio Gratton, determining that United Parcel Service (UPS) had retaliated against Gratton and wrongfully terminated his employment in violation of federal and state employment laws.
Key Findings:
Liability: The jury found UPS liable for:
Unlawful retaliation for protected activity under federal law
Wrongful termination in violation of public policy under Washington state law
Jury Damages Awarded:
$39.6 million in compensatory damages (primarily emotional distress)
$198 million in punitive damages
Introduction
In September 2024, a federal jury in Yakima, Washington issued a $237.6 million verdict against United Parcel Service (UPS) in favor of former driver Tahvio Gratton. Gratton filed suit alleging racial discrimination, hostile work environment, retaliation, and wrongful termination. The jury found UPS liable and awarded $39.6 million for emotional distress and $198 million in punitive damages. This verdict is among the largest for an individual employment discrimination case in the United States.
Background
Employment History:
Gratton began working for UPS in 2016 and transferred to Yakima, Washington in January 2018. According to the lawsuit, Gratton reported experiencing racially discriminatory treatment, including being laid off while white drivers with less seniority were assigned routes, and being given more physically demanding assignments. Supervisors reportedly added extra stops to his route, resulting in longer workdays. Gratton stated that he felt he was being treated less favorably than white coworkers.
Allegations of Harassment:
The complaint described an April 2018 incident during a ride-along with a supervisor, Sam O’Rourke, who allegedly addressed Gratton using racially insensitive language. Gratton requested that the language stop, but the supervisor reportedly dismissed the concern. A customer witnessed the incident and later testified about it. Gratton reported the incident to UPS, but the company did not take remedial action at that time.
Pattern of Unequal Treatment:
Gratton’s lawsuit alleged a broader pattern of disparate treatment, including claims that Black employees received more difficult work assignments and harsher discipline compared to white employees. Examples cited included differences in route assignments, disciplinary actions, and workplace policies.
Retaliation Claims:
Gratton alleged that after filing complaints and grievances, he experienced increased scrutiny and discipline from management. He became a union shop steward and assisted other employees with similar concerns. The lawsuit claimed that management intensified efforts to discipline Gratton following his complaints.
Termination:
In October 2021, UPS terminated Gratton’s employment, citing the findings of an internal investigation regarding an incident with a coworker. Gratton maintained that the incident was accidental and believed the termination was related to his race and prior complaints. Conflicting witness accounts were presented at trial.
The Lawsuit and Trial
Gratton sued UPS in the U.S. District Court for the Eastern District of Washington. His claims included racial discrimination, hostile work environment, retaliation, and wrongful termination. UPS moved for summary judgment, and the judge dismissed some claims but allowed the retaliation and wrongful discharge claims to proceed to trial. At trial, multiple witnesses corroborated Gratton’s account, including the customer who saw the “Boy” incident and coworkers who observed differences in treatment. UPS denied any racial motive, arguing disparities were due to performance and the firing was justified. The jury had to weigh these competing narratives.
The Jury’s Verdict and Damages
The jury sided overwhelmingly with Gratton, finding UPS had unlawfully retaliated against him and wrongfully terminated his employment. They concluded UPS’s conduct was “malicious, oppressive, or in reckless disregard” of his rights, opening the door to punitive damages. The total award was $237.6 million: $39.6 million for emotional distress and $198 million in punitive damages. Such a large punitive award is virtually unprecedented and reflects the jury’s deep condemnation of UPS’s behavior.
Some employment laws cap damages, but Gratton’s claims under 42 U.S.C. §1981 and Washington state law imposed no statutory limits, allowing the jury to award damages as it saw fit. After the verdict, UPS asked the court to reduce or overturn the decision. In November 2024, the judge struck down the punitive award but left intact the $39.6 million in compensatory damages. UPS has indicated it will appeal even that amount. The case continues through post-trial motions and appeals.
Why Did the Jury Award Such a Large Verdict?
Several factors led the jury to value the case so highly:
Egregious Harassment and Reprehensible Conduct: The evidence showed blatant, egregious racism and a failure by UPS management to address it. Jurors reserve punitive damages for especially reprehensible conduct, and the company’s indifference to civil rights inspired a large penalty.
Pattern of Retaliation and Harm: Gratton suffered persistent mistreatment over several years, and his advocacy led to increased retaliation. Jurors were likely moved by anger at how Gratton was treated after he spoke up.
Credible Witnesses and Corroboration: Compelling witness testimony, including a neutral third-party, gave the harassment claims credibility. Evidence of similar discrimination against other Black employees showed a broader culture problem at UPS.
Severe Emotional Distress: The $39.6 million compensatory award suggests the jury found Gratton’s emotional suffering to be profound, warranting significant compensation. ]
Punitive Damages to Deter and Punish: The punitive portion was intended to grab the attention of UPS’s top executives and deter similar misconduct in the future. The jury’s message was clear: such conduct is unacceptable.
Conclusion
The Gratton v. UPS verdict is a stark reminder of how dramatically things can go wrong for a defendant in a discrimination trial. It wasn’t just about a single comment or misunderstanding—it was about a pattern of racial bias and retaliation against an employee who asserted his rights. The jury’s $237.6 million award (even though later reduced) illustrates the extent of their condemnation. For attorneys and employers, this case underscores the importance of thoroughly addressing workplace complaints before they escalate. Juries have little tolerance for employers who ignore or punish employees for reporting discrimination.