In 1987, Ford Motor Co. aggressively recruited black North Carolina
businessman Samuel R. Foster II to join the company's "Minority
Dealer Program," which it began in the 1960s in an effort to increase
black ownership of local franchised Ford dealerships. As a result, in
March 1988, Mr. Foster bought the River City Ford dealership in Selma,
Alabama. In 1991, the dealership went bankrupt and closed. Mr. Foster
promptly sued Ford, claiming that they had committed intentional,
malicious fraud by failing to disclose internal data to him indicating
that blacks, as a group, were more likely to fail than the "average,"
non-minority Ford dealer.
The Alabama Supreme Court sustained a lower court's $6 million
punitive damage award against Ford, plus compensatory awards of
$700,000 for "mental anguish" and nearly $1 million for economic
loss. Mr. Foster's partner Dee-Witt Sperau, who is white, also joined
the suit and will share in the awards.
[Ed: Like a snake eating its tail, liability can stem from failure to
provide the sort of information that is often considered racist...]
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