Wei Zhang v. American Gem Seafoods, Inc., Delaware Corporation McMi Food Company, a Texas Corporation Harry Lees, a Natural Person

339 F.3d 1020, 57 Fed. R. Serv. 3d 350, 2003 Cal. Daily Op. Serv. 7018, 2003 Daily Journal DAR 8819, 2003 U.S. App. LEXIS 16145, 92 Fair Empl. Prac. Cas. (BNA) 641, 2003 WL 21805076
Court of Appeals for the Ninth Circuit·Decided August 7, 2003·No. 01-36130·Published·Cited by 294 cases

Opinion

D.W. NELSON, Senior Circuit Judge.

Appellee Zhang Wei (“Zhang”) 1 asserted claims for employment discrimination and breach of contract, contending that he was retaliated against and ultimately fired due to his Chinese ethnicity and nationality. He sued his former employer, appellant American Gem Seafoods, Inc. (“American Gem”), American Gem’s corporate parent, appellant MCMI Food Company (“MCMI” and, together with American Gem, the “corporate defendants”), and MCMI’s president, appellant Harry Lees, in federal district court. A jury found the corporate defendants liable for discrimination under federal law, awarding both compensatory and punitive damages, and found the corporate defendants and Lees hable for breach of contract, awarding lost wages and wages willfully withheld. All of the defendants appealed. We affirm the district court’s entry of judgment on the jury’s verdict.

Factual Background

The factual recitation herein is taken from the evidence presented to the jury.

Zhang Wei, formerly a professor of business and a proponent of Western economic systems at Northeastern University in Dalian, China, came to the United States in 1990 due to the political crackdown following the Tiananmen Square massacre. After finishing his MBA at Delaware State University, he began working in the seafood industry, eventually becoming the vice president of SeaRich Seafoods and general manager of SeaRich West, based near Seattle.

In September 1997, MCMI formed American Gem as a subsidiary to take over SeaRich Seafoods and several other seafood companies. Zhang was hired to join American Gem after the takeover; according to his employment contract, which was signed by A1 Reitzer, then president of American Gem, Zhang’s position was vice president of American Gem and general manager of its Pacific Gem division. Zhang testified that although his division was integral to the new company’s operations, he was initially offered a lower salary than the Caucasian vice presidents of the acquired companies. He held out for equal compensation, and eventually American Gem agreed. In October 1998, Zhang was promoted to president of the Pacific Gem division, and a 1998 American Gem publication listed Zhang as “responsible for all seafood procurement from China and other Asian countries.”

In December 1997, appellant Harry Lees was hired as president and CEO of MCMI. Lees took a direct role in the management of American Gem, superseding Reitzer; Lees asked Reitzer to step aside as president of American Gem, and Reitzer appointed James Mullin as president in the spring of 1998. In November *1025 1998 Lees hired a new management team that included Clair Parker and Jim Bug-bee. Muhin left American Gem shortly thereafter and Lees forced Reitzer to resign in December 1998. Parker then became president of American Gem, and Bugbee became a vice president. Also around this time, Jim Hilger was hired as the Chief Financial Officer of American Gem.

Zhang presented evidence that he was discriminated against by American Gem’s management, especiahy the new management team. Witnesses testified that Lees told them that he distrusted, Zhang because he was Chinese, that Lees did not like Chinese people and made derogatory comments about them, and that Lees suspected that Zhang was “looking out for his Chinese friends’ interests at the expense of our company.” Another Chinese employee, Parker Gao, testified that Zhang was generally treated worse than American Gem’s white employees.

Zhang was sidelined in the management of American Gem. Although Zhang was a vice president and had previously reported directly to the American Gem president, he was now required to report to the new management team, including CFO Hilger and fellow vice president Bugbee, and he was excluded from management meetings. He had previously been in charge of all Asian operations, but his new business card listed him as Vice President, China Operations. This new description apparently reflected a demotion. No one told him why.

Industry publications, which apparently got their information from American Gem, also omitted Zhang’s name from lists of managers. One referred to six managers in American Gem’s “new Seattle-based management team,” including Parker, Bugbee, and Hilger, but not Zhang. Another publication, dated February 1, 1999, omitted Zhang from a list of officers, vice presidents, and managers of American Gem — a list that showed Bugbee as the Vice President for Asian Procurement— and stated that American Gem’s “management has been completely replaced.” Zhang testified that many of his suppliers were confused by this and called him to see whether he was still with the company.

Zhang presented evidence that he worked hard and that he brought in profits for American Gem. In addition to the Pacific Gem division, Zhang worked with an office in Dalian, China, Zhang’s hometown. Zhang often worked from 6:30 am. until midnight to stay in contact with operations both on the East Coast and in China. Reitzer, Zhang’s former, supervisor, testified that Zhang was a dedicated and tireless worker. .

Zhang’s division, Pacific Gem, was the only profitable division in the company, and Zhang- had the highest sales of any American Gem employee in 1998. Although he was entitled to a $25,000 bonus under his contract, he was never paid one for 1998. Lees testified that Zhang did not receive a bonus because although the Pacific Gem division was profitable, American Gem as a whole was not. Nonetheless, after Zhang was terminated, Bugbee, who is Caucasian, received a bonus for 1999 even though American Gem was unprofitable that year. Zhang also testified that the Dalian office’s expenses were not paid by American Gem while he was in charge.

Zhang never received any antidiscrimi-nation policy literature or training while he worked at American Gem and was not informed about how to make a discrimination complaint. Mullin, American Gem’s president during 1998, testified that there was “no real [antidiscrimination] policy” during the time that American Gem was formed.

Free access — add to your briefcase to read the full text and ask questions with AI

Wei Zhang v. American Gem Seafoods, Inc., Delaware Corporation McMi Food Company, a Texas Corporation Harry Lees, a Natural Person, 339 F.3d 1020, 57 Fed. R. Serv. 3d 350, 2003 Cal. Daily Op. Serv. 7018, 2003 Daily Journal DAR 8819, 2003 U.S. App. LEXIS 16145, 92 Fair Empl. Prac. Cas. (BNA) 641, 2003 WL 21805076 (9th Cir. 2003).

339 F.3d 1020 (Wei Zhang v. American Gem Seafoods, Inc., Delaware Corporation McMi Food Company, a Texas Corporation Harry Lees, a Natural Person) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related