ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, December 3, 1996 TAG: 9612030092
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Associated Press
PLAINTIFFS ARGUED none of the company's senior managers is black and few blacks have been promoted to supervisors.
Electronics retailer Circuit City Stores Inc. systematically discriminated against blacks in promotions at its corporate headquarters, a federal jury ruled Monday.
The panel found in favor of two plaintiffs, while rejecting a third claim.
``We are shocked that the jury could find a pattern and practice of discrimination while also finding in favor of only two plaintiffs in a case that began with 11 plaintiffs,'' said Richard L. Sharp, chairman and chief executive of the company.
He insisted Circuit City does not discriminate and said it will appeal the verdict.
Attorneys for the plaintiffs argued during the monthlong trial that none of the company's senior managers or officers is black, while few blacks have been promoted to supervisors and fewer still placed in managerial jobs.
Shelby McKnight, Renee Lowery and Lisa Peterson were the remaining plaintiffs in a lawsuit filed a year ago by current and former Circuit City employees. Five lawsuits were dismissed before the trial, and three were dismissed during it.
The women's lawyers said promotion decisions at Richmond-based Circuit City were made under an ``excessively subjective'' personnel system that lacks written procedures and allows lower-level managers to promote employees without review. They said such a system favors whites for advancement.
The federal jury ruled in favor of Lowery and Peterson, awarding Lowery $237,500 and Peterson $51,200. It rejected McKnight's claim. There was no indication of a reason for the split ruling.
Discrimination in promotions ``is a true problem at Circuit City,'' said McKnight, who like Lowery still works for the company. ``A lot of people know that it's there, but they don't acknowledge it because they in some way benefit from it.''
The verdict could open the door to more lawsuits against Circuit City because future plaintiffs would not have to prove racial discrimination again.
The company is the nation's largest retailer of brand-name consumer electronics and major appliances. It has 439 stores, including one in Roanoke.
In its most recent earnings report, for the half-year that ended Aug.31, Circuit City reported six-month profits of $48.4 million on sales of $3.38 billion.
LENGTH: Medium: 55 linesby CNB