DATE: Friday, June 27, 1997                 TAG: 9706270644

SECTION: BUSINESS                PAGE: D2   EDITION: FINAL 

SOURCE: BLOOMBERG BUSINESS NEWS 

DATELINE: WILMINGTON, DEL.                  LENGTH:   39 lines

CIRCUIT CITY ORDERED TO PAY FEES IN BIAS CASE

Circuit City Stores Inc. must pay more than $3.9 million in legal fees and litigation costs to lawyers representing two employees who won a racial discrimination lawsuit against the retailer last year.

In December, a federal court jury found two black employees at Circuit City's corporate headquarters in Richmond were passed over for promotion because of their race.

The size of the award to lawyers dwarves the total $288,000 in damages jurors awarded to Rene Lowery and Lisa Peterson on their claims that Circuit City executives systematically discriminated against minorities. Circuit City is appealing those verdicts.

``We believe the size of this award of fees and costs indicates the seriousness of the problem at Circuit City,'' said Rod Boggs, executive director of the Washington Lawyers Committee for Civil Rights and Urban Affairs. That group was part of Lowery's and Peterson's legal team.

Circuit City officials weren't immediately available for comment.

Lowery, Peterson and nine other Circuit City employees filed suit in November 1995, claiming that racism tainted the company's promotion practices.

The jury of seven whites and one black awarded Lowery $237,500, including $225,000 in punitive damages. Peterson won $51,200, including $47,000 in punitive damages.

Jurors ruled against a third plaintiff, Shelby McKnight while U.S. District Judge James Spencer threw out the remaining bias cases.

After the verdict, Spencer ordered Circuit City to promote Lowery and hire a diversity manager as part of an effort to end discriminatory practices at the company. Spencer will oversee the company's efforts for the next five years.

In Wednesday's order, Spencer noted that Circuit City ``mounted a Stalingrad defense'' to Lowery's and Peterson's claims and that warranted a high fee request from their lawyers.

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