Hooters Sued for Racial Discrimination

The New York Times is reporting two Korean immigrants are suing Hooters of America for racial discrimination after they received a receipt with the word “chinx” printed prominently in the guest label field. According to the complaint:

“He [Mr. Kisuk Cha] was so overwhelmed that he just wanted to go to bed to sleep, but was too angry to do so.. This incident has continued to cause him mental anguish. He is haunted by the ridiculing giggles and stares of his persecutor. He does not feel welcome at Hooters and indeed questions whether he is welcomed at any non-Korean establishments.”

A 17-year-old waitress has since admitted to the act and has resigned her position. A Hooters representative is quoted as saying the waitresses behavior:

“…does not reflect the manner in which the restaurant is operated”

How Much is a Racial Discrimination Lawsuit Worth?

Under Title II of the Civil Rights Act of 1964 restaurants are required to offer full and equal enjoyment to all  members of the public. Clearly in this case Hooters did not abide by this law, and has therefore exposed themselves to liability. To determine the worth of this particular case it’s useful to evaluate previous cases where restaurants have been found liable for racial discrimination. For example, the restaurant chain Denny’s has previously had to pay out large sums in order to settle allegation of racial discrimination.

 
Most prolifically in 1994, Denny’s paid $54 million to settle lawsuits filed by thousands of African American customers who were either refused service or forced to wait longer than others (Read more at NYTimes). Although the immediate case does not involve a culture of racial discrimination against a large group, what we can glean from the Denny’s lawsuit is that these types of cases can result in incredibly large settlements. It wouldn’t be surprising if Mr. Cha settled with Hooters in the six-figures.