Kenneth Hicks sued Brown Shoe Company after being fired, claiming racial discrimination violated federal law (42 U.S.C. § 1981). A jury found the company guilty and awarded him $10,000 in punitive damages plus attorney fees. The appeals court upheld the verdict, ruling that discriminatory discharge is illegal because it destroys the core benefit of an employment contract. This matters to subcontractors because it establishes that race-based firing is actionable and can result in significant financial penalties for companies.
Discriminatory discharge based on race violates federal law and is fully actionable in court—companies cannot defend this conduct