Jury Hits Oberlin College With Maximum Penalty Of $33M For Helping Smear Bakery Over Hate Hoax

A jury has awarded $33.2 million in punitive damages to Gibson’s Bakery, whose owners claimed Ohio’s Oberlin College and an administrator hurt their business and libeled them during a dispute over a shoplifting episode that triggered protests and allegations of racism.

The Chronicle-Telegram reported the same jury awarded Gibson’s business and family members more than $11 million in actual or compensatory damages, bringing the total award to more than $44 million.

The Lorain County jury Friday awarded David Gibson $5.8 million, son Allyn Gibson $3 million and Gibson’s Bakery $2.2 million.

The protests occurred after Allyson Gibson, who is white, confronted a black student who’d shoplifted a bottle of wine. Two other black students joined in and assaulted Gibson.

The students pleaded guilty to misdemeanors and read statements in court saying Gibson’s actions weren’t racially motivated.

Gibson’s lawyers spent considerable time going over Oberlin College’s IRS Form 990, showing over $1 billion in assets and numerous employees earning over $100,000, They also got the Vice President and General Counsel of the college to admit to some of the content of the blast email she sent out soon after the compensatory verdict, including that she felt the jury disregarded the “clear evidence,” though they were not permitted to show the jury the letter itself under a prior court ruling.

The defense then argued that notwithstanding the Form 990, the college had cash flow and liquidity issues that would make a large punitive award difficult for the college. The defense compared the relatively poor financial condition of Oberlin College to other colleges and universities in Ohio. The defense argued that students would be harmed by a large verdict because the college might have to cut back on grants given to students.

Oberlin College staff -- including deans and professors -- and students engaged in demonstrations in front of Gibson’s Bakery following the arrests of the three students, the lawsuit stated. The suit also said Oberlin Vice President and Dean of Students Meredith Raimondo and other college staff members “handed out hundreds of copies” of a flier to the community and the media stating that Gibson’s Bakery and its owners racially profiled and discriminated against the three students.

The court documents include a copy of the flier, which included the words “DON’T BUY.” “This is a RACIST establishment with a LONG ACCOUNT of RACIAL PROFILING and DISCRIMINATION,” the flier read, according to the lawsuit. The flier also listed 10 of the bakery’s competitors and urged customers to shop there instead.