Kang v. U. Lim America, Inc.

Soo Cheol Kang (plaintiff), a United States citizen of Korean origin, worked for U. Lim America, Inc. (American) (defendant). American was owned by Ki Hwa Yoon, and his son, Tae Jin Yoon (Yoon) (defendant), served as the company’s vice president and CEO. Ki Hwa also owned U. Lim de Mexico (Mexican), a company based in Tijuana, Mexico. Yoon was the president and CEO of Mexican. American managed Mexican’s business operations, controlling Mexican’s accounts, managing payroll, hiring and firing Mexican’s employees, and controlling Mexican’s supervisors. Kang and American’s five other employees, all of Korean descent, crossed the border into Mexico daily to work at Mexican’s factory. The other 50 to 150 factory employees were citizens of Mexico. Yoon often told Kang that Korean workers were better than workers from the United States and Mexico and were expected to work harder and longer. Overtime was mandatory. When Kang failed to live up to Yoon’s expectations for Korean workers, Yoon subjected him to verbal and physical abuse, yelling at him for extended periods, striking him with a ruler, kicking him, pulling his ears, and throwing objects at him. Eventually, when Kang cut back on his overtime hours, Yoon fired him. Kang sued American and Yoon in California state court, alleging disparate treatment and a hostile work environment based on his national origin in violation of Title VII of the Civil Rights Act of 1964 (Title VII). After the case was removed to federal district court, American and Yoon moved for summary judgment, arguing that Title VII did not apply because American had fewer than 15 employees and that, even if it did apply, Kang’s allegations were insufficient to state viable claims. The district court granted summary judgment in American’s and Yoon’s favor. Kang appealed.