Dennys Discrimination
Lawsuit Dismissed, July 20-26, 2000 AsianWeek.com

By William Kates/AP

A federal judge dismissed a race discrimination lawsuit brought by nine Chinese and African Americans who claimed they were thrown out of a Dennys restaurant and beaten by white customers while security guards
watched.  U.S. District Judge Frederick Scullin said the former students failed to show they were denied seating or security services in dismissing the 1997 lawsuit.

Last November, the U.S. Justice Department rejected the groups appeal to bring federal charges against the restaurant and those involved after determining there was no evidence to support their allegations.

We still feel that there are facts in dispute here and that this case should go to the jury, said Ken Kimerling, a spokesman for the
Asian American Legal Defense and Education Fund, which represented the students. We are probably going to appeal. We have to talk it over with everyone, but thats our inclination, he said on Monday.

Although Scullin filed his decision July 13, lawyers just received notice Monday, he said. If appealed, the case would go the 2nd U.S. Circuit Court of Appeals.

We were confident that when all the facts were presented, Dennys
would be vindicated, said James B. Anderson, Dennys president and chief executive officer. Dennys parent company, Advantica
Restaurant Group in Spartanburg, S.C., has nearly 1,800 company and franchise restaurants worldwide.

We have worked very hard to create an inclusive organization that embraces diversity in every aspect of our business, he said.

The former students claimed that the group was racially discriminated against at a suburban Syracuse Dennys on April 11, 1997.

The group - seven Chinese Americans and two African Americans - said they were denied service while other customers were seated ahead of them, then were assaulted in the restaurants parking lot by a group of white patrons as two security guards watched.

The security guards were off-duty deputies so the lawsuit also named Onondaga County as a defendant, contending the county was negligent for not properly training the deputies.

Local prosecutors initially investigated the case but refused to file criminal charges. Instead, District Attorney William Fitzpatrick accused the students of being drunk, disorderly and orchestrating their claim, knowing full well Dennys legal history regarding discrimination.

In 1994, Dennys settled a $46 million class-action lawsuit brought by black Secret Service agents and California students who claimed discrimination in separate incidents. As part of the settlement, Dennys operates under the watch of a federal civil rights monitor from the justice department.  However, its problems have continued with recent incidents arising in Maryland, Florida and West Virginia.

According to restaurant employees and witnesses, the group became rude and rowdy when they could not be immediately seated together in the busy restaurant, which was teeming with an early morning breakfast crowd heading home from the bars. The group was asked to leave and then started a fight in the parking lot, according to the prosecutors report.

The students, most of them attending Syracuse University, left
before police arrived. They did not seek medical treatment or report the fight until after they had gathered at one of the students apartment, the report said.

Dennys Inc. maintained it was not responsible for what happened at
the Syracuse restaurant because the restaurants were franchised to
an independent company, NDI Foods Inc.

Syracuse-based NDI Foods has since entered bankruptcy proceedings and turned its seven upstate New York Dennys franchises back over to Dennys parent company. NDI also denied that any discrimination occurred.

JULY 1999 LETTER FROM ASIAN-AMERICAN LEGAL DEFENSE FUND ("AALDEF") ON LAWSUIT AGAINST DENNY’S

As you know, on behalf of the students, AALDEF has previously circulated community updates on the case at various stages. Contained below is the most recent community update. You are welcome to circulate it in response to inquiries you may receive. Again, thank you for your continued interest in the case.

Community Update:

DENNY'S SEEKS TO DISMISS DISCRIMINATION LAWSUIT- ASIAN/AMERICAN STUDENTS SEEK JUSTICE

The Asian/American and Caucasian students who were denied service at Denny's in Syracuse, NY, and then viciously attacked in the restaurant's parking lot continue their civil rights lawsuit against Denny's, the franchise-owner NDI, the County of Onondaga and the deputy sheriffs who failed to protect the students from being attacked. African/American students who intervened to end the fight and then were denied service have joined in the lawsuit. Two years after the horrible incident, Denny's continues to deny responsibility and has engaged in a public relations campaign to "buy" the Asian American community's good will and whitewash the company's long history of discriminatory treatment of minority customers. On September 24, 1999, a federal judge will hear arguments on Denny's motion to dismiss the lawsuit. This is a pivotal point in the case, and the Asian/American students are determined in their pursuit of justice and for Denny's to take its rightful responsibility for the incident.

WHAT HAVE WE DISCOVERED?

Denny's Fails To Ensure That All Employees Receive Proper Non-Discrimination Training

The civil rights monitor found that several Denny's employees had not received the required non-discrimination training. The lawsuit revealed the manager who ejected the students, the hostess who ignored them and one of the deputy sheriffs who failed to protect them and several other employees did not receive the required non-discrimination training.

Restaurant Wasn't Full When The Students Were Denied A Table

The Denny's restaurant has a back room which is opened to accommodate an overflow of patrons. While Denny's employees claim the restaurant was busy the night of the incident, the Asian/American students were never offered a seat in the empty back room.

Alleged Attacker Is Arrested For Manslaughter In Separate Incident

In August 1998, Christopher Warnock, the person D.A. Fitzpatrick believes attacked the Asian/American students yet was not prosecuted, was charged with 1st degree manslaughter after he kicked a man in the head while he was on the ground in a club parking lot.

Crucial Evidence Was Destroyed; Defendants Are Changing Their Stories

The wait list from the evening of the incident has been "disposed of." One of the Asian/American students put his name on the wait list after their party was ignored by the hostess. The wait list would have shown the student's handwriting, documenting the students' wait for service. After the lawsuit was filed charging that the Denny's security guards failed to protect the students, one of the guards now claims that Warnock tried to grab his gun, putting the deputy sheriff's life in danger. However, the deputy sheriff did not report this to police responding to the incident, and no warrant for his arrest was issued.

One Of The Alleged Attackers Was Friendly With The Denny's Security Guards

Denny's employees claim Christopher Warnock bragged to the deputy sheriffs that he had been involved in a fight earlier on the evening of the incident. Warnock stated that one of the deputy sheriffs had approached him about doing repairs to the deputy sheriff's car. The deputy sheriffs could have arrested Warnock for attacking the Asian/American students, but instead they let him go. In fact, after Warnock attacked the Asian/American students, Denny's let him return inside to finish his meal.

Denny's Had Control Over The Syracuse Franchise

In this lawsuit, numerous documents demonstrate that Denny's had control of the franchise, but Denny's has marked these documents "confidential". Pursuant to a court order, "confidential" documents are not allowed to be shared with the public. While Denny's has shrouded the legal case in secrecy, it is engaging in a public relations campaign that Asian/Americans are welcome at their Restaurant.

WHAT'S HAPPENED SINCE THE APRIL 11, 1997 INCIDENT?

August 97 - Civil Rights Monitor selected by the U.S. Dept of Justice investigates and recommends discipline against the employees involved and finds several employees didn't receive the required non-discrimination training. The students file a civil rights lawsuit against Denny's, Inc., franchise owner NDI Foods, Inc., the County of Onondaga and the deputy sheriffs.

September 97 - Two of the students identify Christopher Warnock in a photo-line up. D.A. William Fitzpatrick refuses to arrest Warnock, despite stating in his report "We believe that Christopher Warnock was the person who threw the first punch."

October 97 - The FBI conducts an investigation into the attack, which is still ongoing.

November 97 - NDI, the owner of the Denny's franchise in Syracuse, files for Chapter 11 bankruptcy, putting an automatic "stop" to any litigation against NDI.

January 98 - Bankruptcy Judge allows students' lawsuit against NDI to proceed.

March 98 - Kaye, Scholer, Fierman, Hays & Handler, LLP, a major international law firm, joins AALDEF and Finucane & Hartzell, in representing the students.

August 98 - Christopher Warnock, the person who attacked the students, is charged with first degree manslaughter for kicking a man in the head while the victim lay on the ground in the parking lot of a nightclub.

November 98 - The discovery phase of the lawsuit is completed.

January 99 - Latino patrons in California file a civil rights discrimination lawsuit against Denny's after being refused service. Denny's launches $2 million advertisement campaign promoting its commitment to racial diversity.

June 99 - African American 6th graders from Maryland file a civil rights lawsuit for discrimination at Denny's in Florida. Denny's files for summary judgment to dismiss the Syracuse case. Students file papers opposing summary judgment.