Danco, Inc. And Benjamin Guiliani, Appellees/cross-Appellants v. Wal-Mart Stores, Inc., Appellant/cross-Appellee

BOUDIN, Circuit Judge.

In the district court, Danco, Inc., and its owner Benjamin Guiliani, brought suit against Wal-Mart, which is a major discount retailer. On a claim for racial discrimination under 42 U.S.C. § 1981, the jury awarded the plaintiffs $650,000, based on a hostile work environment theory; the judge reduced the award to $300,000. Wal-Mart appeals from this judgment; the plaintiffs cross-appeal from the district court’s dismissal prior to the jury’s verdict of plaintiffs’ claim for punitive damages.

Benjamin Guiliani — a Mexican-American — started his company, Danco, in 1988 to…