June 5, 2006 8:40 AM, EDT

Two FedEx Drivers Awarded $61 Mln. in Discrimination Suit

Company Plans to Appeal California Decision

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California jury awarded $61 million to two FedEx Corp. drivers of Lebanese descent who claimed a manager harassed them with racial slurs for two years, the Associated Press reported Saturday.

The two contract drivers said in the discrimination lawsuit they were called “terrorists” and other names in 1999 and 2000 by a terminal manager at a FedEx Ground facility in Oakland, Calif.

Fedex Ground, a unit of FedEx Corp., plans to appeal, AP reported. A company spokesman said other managers testified that the harassment never happened, but declined to discuss specifics, citing ongoing litigation, AP said.

The spokesman said the company has strong anti-discriminatory policies, FedEx said, according to AP.

An Alameda County Superior Court jury Friday awarded the men $50 million in punitive damages on top of $11 million in compensatory damages the jury awarded them on May 24, a lawyer for the plaintiffs and a FedEx Ground spokesman said Saturday.

FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.