In a landmark victory that underscores the extraordinary value of appellate specialists, Kyle Hawkins and Leah Bower of Lehotsky Keller Cohn LLP masterfully navigated a high-stakes appeal on behalf of FedEx, persuading the Fifth Circuit to reduce a punitive damages award against the company from USD 365 million to zero. Kyle and Leah further persuaded the court to reduce the compensatory damages award from over USD 1 million to USD 248,629.
The case involved claims of race discrimination and retaliation brought by a former district sales manager. Following a 2022 trial, the jury awarded the plaintiff over USD 366 million. Hawkins and Bower were retained after the jury issued its verdict to pursue an appeal in the Fifth Circuit.
Central to their success on appeal was a careful strategy of attacking the jury’s award from multiple angles. First, Hawkins and Bower successfully persuaded the Fifth Circuit that the plaintiff's claims under 42 U.S.C. Section 1981 were time-barred by contractual provisions within her agreement with FedEx, which required any claim against the company to be brought within six months. The Fifth Circuit had not previously considered whether such private limitations agreements are enforceable; in a major win for employers, Hawkins and Bower convinced the Fifth Circuit that they are.
Second, Hawkins and Bower persuaded the Fifth Circuit that the jury’s USD 365 million punitive damages award is unlawful in its entirety because FedEx’s good faith efforts to comply with federal antidiscrimination law precluded the availability of punitive damages. The panel specifically acknowledged those “good faith efforts” in holding that FedEx could not be subject to punitive damages.
Beyond the immediate financial implications for FedEx, this landmark appeal carried broader ramifications for the legal landscape, particularly concerning the availability of punitive damages and the enforceability of contractual limitations periods in employment agreements. Hawkins and Bower seized the opportunity to not only secure a favorable outcome for their client but also to contribute to jurisprudential clarity on these important issues for employers nationwide.
The collaboration between Lehotsky Keller Cohn and FedEx epitomized the convergence of legal acumen and a robust partnership between in-house counsel and outside appellate specialists. Hawkins and Bower's meticulous preparation and adept advocacy during briefing and oral argument underscored the strength of this collaborative effort. The result was an extraordinary victory. In February 2024, Hawkins and Bower were named Litigators of the Week by The AmLaw Litigation Daily and named Legal Lions of the Week by Law360.