On January 27, 2004, employees filed a lawsuit under under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., 42 U.S.C. § 1981, the Tennessee Human Rights Act, Tenn. Code Ann. § 4-21-01 et seq., and Tennessee state law concerning retaliatory discharge, Tenn. Code Ann. § 50-1-304, against their employer, Southtec LLC, an automotive supplier, in the United States District Court for the Middle District of Tennessee. The plaintiffs, represented by private counsel, alleged racial discrimination and asked the court for injunctive relief, compensatory and punitive damages, and attorneys' fees. Specifically, plaintiffs contended that Southtec LLC had committed intentional and subjective discrimination in which employees and potential employees were discriminated against on the basis of race and national origin in hiring decisions, pay increases, promotion decisions, and in their working environment.

On October 15, 2004, the plaintiffs filed a motion to certify their class action claims and on September 8, 2005, the court (Judge John T. Nixon) granted class certification. The class consisted of all former, present, and future employees at the Southtec plant in Lebanon, Tennessee. Leonard v. Southtec, LLC., 2005 U.S. Dist. LEXIS 32751 (M.D. Tenn. 2005). On January 31, 2006, the Sixth Circuit Court of Appeals granted the defendant's petition for interlocutory appeal and vacated the district court's decision to grant class certification.

The parties subsequently reached a settlement. On March 2, 2007, the plaintiffs entered a settlement agreement and consent decree with the court. On May 15, 2007, the court issued a consent decree and a final order of class action settlement. The settlement class for purposes of monetary relief included all African-American and Hispanic individuals who applied for employment at Southtec's Lebanon, Tennessee facility from January 1, 2002, through the time of the settlement, but who were not hired or re-hired. The settlement class for purposes of equitable and declaratory relief consisted of all African-American and Hispanic individuals who were employed at Southtec's Lebanon, Tennessee facility at any time, for any length of time, between the commencement date and expiration of the decree. Additionally, the plaintiffs' counsel was awarded $315,000 in attorneys' fees and reimbursement of expenses. Overall, defendants agreed to pay $900,000, to not make hiring decisions on the basis of race or national origin, and to provide training prohibiting discrimination and harassment.

Emily Kuznick - 04/08/2008


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