Race Bias Alleged in Suit Against Coors

A former vendor sued beer manufacturer Adolph Coors Co. Monday for $20 million for alleged racial discrimination, filing suit under the newly signed Civil Rights Act of 1991 that became law last week.

The suit, filed in federal court in Denver, alleges that Coors failed to follow up with commitments on orders worth as much as $3 million because of racial prejudice and discrimination.

The lawsuit was filed on behalf of the now-dissolved Great American Tool & Manufacturing Co. and its sole shareholder and president, Felix Burrows Jr., who is black. It seeks damages of $20 million.

Great American was an industrial tool and parts maker that wanted to produce components for Coors’ bottling operations. Burrows, a Chicago businessman, bought Great American in 1985.

According to the lawsuit, Burrows made major investments in Great American to upgrade the company’s products to meet Coors’ quality standards.

The suit contends that Coors executives promised that if their guidance was followed, Great American could become a key supplier to Coors. Burrows maintained that his company made substantial investments and decisions based on suggestions by Coors executives.

Orders from Coors never came, however, and Burrows was forced to liquidate Great American late last year.

Barry Freeman, a lawyer for Great American, said the company learned after the liquidation that key personnel in Coors’ purchasing department had no plans to honor the commitments they had made--because of racial prejudice.

“We have evidence of racial comments and slurs made about Mr. Burrows by the people responsible for the purchasing at Coors at that time,” Freeman said.

Coors denied that its decision to halt business with Great American was related to racial prejudice or discrimination. “To claim the decision was racially motivated is unconscionable,” the company said.