Lawsuit alleges bias against would-be Deere
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MOLINE, Ill. -- A former Quad-City resident has filed a lawsuit in Alabama charging that Deere
& Co. blocked his purchase of a Deere tractor and turf dealership because of his race.
Kenneth Edwards, who also worked at the Rock Island Arsenal before beginning a 30-year
career with Deere, is seeking more than $25 million in damages.
In the lawsuit, the 56-year-old Edwards claims that following his retirement in 2001 he sought
Deere & Co. approval to purchase two existing company equipment dealerships located in
Tuscaloosa and Bessemer, Ala. Edwards further claims that Deere blocked the purchase by
requiring financial demands that were not made on prospective white buyers.
Specifically, Edwards claims that the financing terms for the purchase of the dealerships were
"significantly different from those which have been placed on white buyers over the last four
years from Deere."
"More importantly, these restrictions also prevent Edwards from realizing his dream of becoming
the first African-American to own a Deere dealership," the lawsuit says.
Deere spokesman Ken Golden said the company's policy is to not comment on legal actions
against the company.
Among the charges in the suit are that none of the 1,400 golf and turf or agricultural dealers of
Deere equipment are African-American. The suit also says that there are no African-Americans
on Deere's board of directors and cites the number of African-American corporate or operating
officers.
Golden said Aulana Peters, a retired lawyer who is African-American, has been on the board for
two years. Also on the board are a second woman, Crandall Bowles, Antonio Madero, a native of
Mexico; Dipak Jain, a native of India and Joachim Milberg, a native of Germany.
James Jenkins, who is African-American, is senior vice president and general counsel of Deere
& Co. Pierre Leroy is president of the worldwide construction and forestry division and
worldwide parts division and is African-American. James Collins, also African-American, is
president of the John Deere Foundation, the company's charitable arm.
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John Deere Inc. Fights Race Charges
BY DAVID STOKES – The Atlanta Inquirer - Saturday, May 29, 2004
One of the largest suppliers of golf and turf marketing equipment nationwide is being forced to
answer charges of alleged racial discrimination by a retired company manager after being denied
franchisee rights and ownership due to “stringent financial demands” and other “unusual
requests.”
Kenny Edwards, who retired from the John Deere Inc. as worldwide director of Golf and Turf
Marketing Sales, in early April filed in the U.S. District Court for Northern Alabama alleging
that his longtime employer caused “severe mental pain, anguish and embarrassment” upon being
denied his right to become the first African-American owner and operator of what is considered
to be two lucrative John Deere agricultural dealerships in Tuscaloosa, Ala.
After providing 30 years of his professional life to John Deere Inc., initially, as a marketing
associate and various promotions leading to the directorship as “the first Black” in all positions,
Edwards remains perplexed and undoubtedly perturbed of what was perceived a mutually
beneficial relationship with regional and corporate managers. After all, Edwards states he was
recruited by Deere for “diversity” in 1971 from the U.S. Army, cultivated associations with
executives in suburban Chicago-based headquarters, progressed throughout the company that
included a five-year stint in Atlanta to create the region’s golf and turf development and, among
the commendations and accolades, performed his duties so well that at the time of his Dec., 2001
retirement, corporate bosses asked him to remain “indefinitely” with an offer of another
promotion and more pay.
Furthermore, Edwards’ good works and capabilities in establishing golf and turf dealerships in
the U.S. and abroad for Deere were cited by the trade magazine, Golf Inc., as “one of the golf
industry’s 21’Most Dynamic Movers and Shakers’..., and ‘is leading his firm to the industry’s
prominence once held by Toro Corp.’.”
The 56 year old father of four and grandfather of five wonders now if it was all for naught and a
ruse.
As Edwards worked his way to prominence and distinction within Deere, he decided to become
an owner, not sitting idly by for a monthly pension check. In the summer 2002, Edwards initiated
the process to acquire two dealerships in Tuscaloosa that could only benefit the industry from
noteworthy experience. Additionally, Edwards wanted to increase Deere’s “stated diversity
policies and program...(although) the company has failed to attain any notable diversity in its
management ranks, dealers/owners, or on its board of directors,” according to the lawsuit.
“Edwards had hoped and dreamed that through purchasing the two Deere dealerships, he would
become the first African-American owner of a Deere agricultural dealership.”
John Deere, Inc., founded in 1837, is one of the world’s largest suppliers of golf and turf
marketing equipment. In the continental United States, Deere “controls approximately 70% to
80% of the agricultural market, with a “large percentage” of company income supplied by
federal government contracts, thereby, Deere being subjected to U.S. Executive Order 11246,
outlining , in essence, business entities participating with the government by contractual means
must not consider additional parties on basis of race, religion, ethnicity, as well as impart or
encourage minority participation.
The two dealerships Edwards looked to purchase and their “attractiveness” is the selling “70
percent of all goods to the federal government,” according to the lawsuit. In 2002, Deere
accumulated nearly $320 million from net sales of $13 billion gross income. Initially Edwards
and his wife filed a Sept., 2003 complaint against a white couple, Don and Joy Rose, and Tractor
and Turf of Alabama, Inc. and Skyland Equipment of Alabama, Inc., who were willing to sell the
dealerships to Edwards; however, the Roses have since been dismissed as defendants of the
lawsuit.
Edwards feels he was denied ownership and the deal process “frustrated ...due to his race” and
financial demands and terms are “onerous, arbitrary and capricious. Furthermore, the financing
terms are a “pretext for racial discrimination to prevent any African-American from owning”
Deere dealerships within the U.S., the lawsuit says.
Edwards’ lead counsel, Byron Perkins of Birmingham’s Wiggins, Childs, Quinn and Pantazis,
P.C., believes plain and simple racism is the mitigating factor that prevented the Lamar Univ.
graduate from allowing “his children and grandchildren to inherit his legacy, with birthright
being taken away...and (victimized) by malicious and reckless interference in not being able to
keep promises to provide for (family) as anticipated.”
“How do you explain a company who gets billion$ in federal contracts ..., puts restrictions on
Edwards (to become an owner) and the dealerships in question had valuable major contracts,
why at all were restrictions applied to purchasing the dealerships,” Perkins asked.
In a statement two weeks ago, Deere corporate management “believes this lawsuit is without
merit,” according to Curtis Linke, vice president of corporate communications.
“John Deere Inc. consented to Mr. Edwards’ purchase of the dealershps, subject to terms and
conditions that were agreed to in writing by Deere, Edwards and the independent owners. The
independent owners (Don and Joy Rose) later withdrew the offer to sell,” the statement
continued.
“If someone has an interest in becoming a Deere dealer, has the business experience, is willing to
learn how to become an effective John Deere dealer, and has access to sufficient capital, we are
willing to put them in contact with current owners who indicate a willingness to sell,” according
to Deere’s Worldwide Commercial and Consumer Equipment Division President John J. Jenkins.
Another litigious matter brought to surface is Edwards’ allegation no African-Americans serve
on the corporation’s board of directors, nor on it senior management team. “Very few black
managers exist,” according to Edwards, and the majority of blacks within the company are in
clerical positions. Deere’s response in the statement is that “of the two females on the board of
directors, one is African-American, along with other members born in India, Germany and
Mexico..., and it be noted that two of the eight-member senior management team members” are
black.
Nationwide publicity has been rendered Deere Inc. to enter into improving diversity efforts. Rev.
Jesse Jackson and former SCLC President Martin Luther King 3rd are talking to top executives.
Syndicated radio and PBS talk show host Tavis Smiley has also brought attention to the lawsuit
that could enter U.S. District Court in about two weeks, according to attorney Perkins.
Although the lawsuit signifies and “demands a jury trial,” Perkins stated last week via telephone
that mediation is possible. However, he feels Smiley’s television efforts have warranted the only
mediation Deere managers are willing to initate. “We’ve tried to begin constructive talks o
numerous occasions.”
For Perkins, himself a native Alabamian, the possible awarding of punitive and compensatory
damages, along with back-pay and injunctive relief for Edwards, is secondary. Perkins implies
winning, money and the dealerships are not the caveat. The primary issue is eventual
“transferring wealth onto and with the black community. Huge gaps exist and opportunities are
lacking” with businesses to share the wealth with African-Americans, in particular. “Ownership,
black enterprise and building towards wealth to pass onto generations are the next level for
blacks.”
Nevertheless, Perkins said, “no one likes to be called a racist—even when they act like a racist.”