Kenny Faulk v. Dimerco Express USA Corp.

Court of Appeals for the Eleventh Circuit·Decided April 7, 2026·No. 24-12603·Published

Opinion

FOR PUBLICATION

In the

United States Court of Appeals For the Eleventh Circuit

No. 24-12603

KENNY FAULK, Plaintiff-Appellee,

versus

DIMERCO EXPRESS USA CORP., Defendant-Appellant.

Appeal from the United States District Court for the Northern District of Georgia D.C. Docket No. 1:21-cv-01850-MLB

Before WILLIAM PRYOR, Chief Judge, ABUDU, Circuit Judge, and CONWAY,* District Judge. WILLIAM PRYOR, Chief Judge:

This appeal requires us to decide whether a lawyer’s misconduct and alleged errors by the district court in admitting evidence

USCA11 Case: 24-12603 Document: 54-1 Date Filed: 04/07/2026 Page: 2 of 41

2 Opinion of the Court 24-12603

require a new trial and whether awards of compensatory and punitive damages were excessive. Dimerco Express USA, a transportation company, conditionally hired Kenny Faulk for an Atlanta sales job, but withdrew his offer when the president of Dimerco discovered Faulk was black. Faulk sued Dimerco for racial discrimination. See 42 U.S.C. § 1981. A jury awarded Faulk $390,000 in damages for lost wages and emotional distress, and $3 million in punitive damages . Dimerco moved the district court for a new trial based on the misconduct of Faulk’s counsel and evidentiary rulings by the district court. Alternatively, Dimerco asked the district court to remit the compensatory damages and to reduce the punitive damages. The district court denied Dimerco’s motions. Because the district court cured the lawyer’s misconduct and did not reversibly err in its evidentiary rulings, we affirm its denial of a new trial. Because the compensatory damages were supported by the evidence, we also affirm the denial of remittitur. And because the punitive damages are not unconstitutionally excessive for Dimerco’s reprehensible conduct, we affirm the denial of the motion to reduce them.

I. BACKGROUND

We view “the facts in the light most favorable to the jury’s verdict.” Yates v. Pinellas Hematology & Oncology, P.A., 21 F.4th 1288,

* The Honorable Anne C. Conway, United States District Judge for the Middle

District of Florida, sitting by designation.

24-12603 Opinion of the Court 3

1295 (11th Cir. 2021). We first recount those facts before describing the proceedings in the district court.

A. Dimerco’s Discrimination Against Faulk Dimerco Express Group is a multinational transportation company with several onshore offices, including one in Atlanta. It is based in Taiwan, and the defendant is its United States subsidiary, Dimerco Express USA. We refer to the defendant subsidiary as Dimerco .

In March 2018, the founder of the parent company, Paul Chien, met with Herbert Liou in Los Angeles while interviewing him for the presidency of Dimerco. At Chien’s request, Liou submitted a management plan to Chien and requested feedback. Although Dimerco purported to have a race-neutral hiring policy, one of Liou’s proposals was “[h]iring Caucasian Sales & Marketing Manager/VP in LAX/NYC respectively.” Another item suggested “leveraging Caucasian Sales & Marketing Manager/VP . . . to assist local office.” At trial, Liou explained that Dimerco needed “Caucasian ” managers to “attract the Caucasian market.” Chien promoted Liou to president of Dimerco.

Renee Howard worked as human resources manager for Dimerco . She recruited for several locations, including the Atlanta of- fice. Liou requested that she assist in recruiting account executives —the title for salesmen. Branch managers were the primary

4 Opinion of the Court 24-12603

hiring managers for their own locations, but when a branch manager decided to extend a job offer, Liou would “review the offer” before Dimerco would contact the applicant.

Howard noticed that Liou rejected any non-white applicant she submitted to him. Liou told her that he preferred to hire white applicants because “it is easier to get a Caucasian person through the door to obtain sales . . . than it was any other race.” Howard was uncomfortable with the practice and spoke to her manager, Anthony Tien, about the racially discriminatory policy in June 2019. Tien told her that Liou had decided that Dimerco could only hire “white Caucasi[a]n[s]”—preferably men under 40—as account executives. In October, Howard presented a PowerPoint to her human resources team stating that “Ideal Sales Candidates” would be “American and Caucasian (preferred) ethnicity.” She attributed this view to Liou, who told her that his preference was “Caucasian, young, white men” because “they were . . . work horses.”

Kenny Faulk, a black man, possesses bachelor’s and master’s degrees in business administration. Immediately before applying to Dimerco, he worked for Livingston International as a trade management executive. In July 2019, he was arrested for rape, battery, and aggravated assault. He did not tell his employer about his arrest and was fired because he failed to report to work. After retaining counsel, he sent a demand letter to Livingston, which falsely attributed his absence to sickness and his mother’s health.

In August 2019, he applied to the Atlanta office of Dimerco for a position as an account executive. Howard and Sookie Song,

24-12603 Opinion of the Court 5

the Atlanta branch manager, offered Faulk the job with a salary of $90,000, conditioned on his successful competition of a background check. They were unaware of Faulk’s arrest or his firing by Livingston, because Faulk misrepresented that he was still employed there.

Dimerco’s background check revealed that Faulk had been found guilty of misdemeanor disorderly conduct in 2014. Dimerco also received a Fulton County docket report about Faulk’s conviction , which showed that the conviction was reduced from a charge of aggravated assault. Song became concerned that hiring Faulk might risk the safety of the office and clientele. She emailed Howard , with Liou copied, a screenshot of the report of the disorderly conduct charge and wrote, “I [am] not sure what we need to do?” The screenshot also identified Faulk as “Black.” Liou directed Howard to rescind the offer.

On September 27, 2019, Howard emailed Faulk to tell him the offer was being rescinded. To this email Howard attached the background check which, she noted, contained “information” that “caused [Dimerco] to rescind the offering of employment.” The email suggested that Faulk “contact” Dimerco if any information in the report was inaccurate or if he wanted clarification. Faulk spoke with Howard on the phone and told her that the disorderly conduct conviction arose from “a verbal disagreement with [his] ex-wife,” but Howard told him there was nothing he could do.

In November 2019 the Dallas office of Dimerco hired Tanner Thibobeaux, a white man, as an account executive. Howard

6 Opinion of the Court 24-12603

screened Thibobeaux and sent him to the Dallas branch manager, Eric Tsai. A background check revealed that Thibobeaux had four misdemeanor convictions stemming from one incident in 2013. When the report came back, Howard called Thibobeaux and allowed him to explain the situation, which he later did by email. Liou approved hiring him, and Thibobeaux worked for Dimerco for about two years. Howard asked Liou why Dimerco would hire someone with a more significant record than Faulk. Liou responded that he wanted to hire only whites.

In January 2020, Howard emailed Liou insisting that “it’s discriminating to search for [a] candidate based on race.” Liou forwarded the email to the director of administration and compliance, Cathy Chou. He attached a proposed response that Dimerco “is focusing on [the] Caucasian Market.” Chou responded to Liou that “[i]f [you] put[] in writing that you want a specific race . . . , [b]oth you and the company are guilty of discrimination and if we ever get a legal complaint, these emails will result in a guilty verdict and large damage award.” Chou limited her advice to “strongly suggest [ing] [Liou] reword the message.” Howard resigned in March.

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