Case of the “McStinkyNigger” Orange County Restaurant Receipt Settles


A federal lawsuit filed by a successful African-American businessman against a Newport Beach steakhouse that repeatedly listed him on credit card receipts as “McStinkyNigger,” “McNigShit” and “McCottonwood” has been mutually dismissed, according to records at Ronald Reagan Federal Courthouse in Orange County.

Court files show that lawyers representing plaintiff Mark McHenry and Landmark Steakhouse of Corona del Mar agreed to a stipulated settlement of the lawsuit on Feb. 2 — a month before the case was scheduled to be heard by a jury.
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No terms of the settlement were revealed. But you can guess any payment
to McHenry is going to be financially substantial. It is against federal
law for a public business to brazenly discriminate against a customer
based on race.

And there was this: The 10-month-old case ended after
McHenry's lawyers at Reed Smith LLP in Los Angeles uncovered an additional 12 inflammatory examples of racists
comments and after U.S. Magistrate Judge Victor B. Kenton
rejected the restaurant's strenuous attempts to thwart the lawyers from inspecting 167,000 other customer receipts to check for a systematic, widespread use of racial epithets.

In a deposition, Mario Marovic, a partial owner of CDM Restaurant, Inc. which includes Landmark Steakhouse, said that he does not “discriminate against any group of people on any basis whatsoever.”

The court files reviewed by the Weekly
show that Marovic was shocked by McHenry's allegations, conducted an
investigation and ultimately blamed the racist incidents on a bartender,
Michael Cederoth. Though Cederoth did not confess, Marovic
believed he'd given “inconsistent” answers during interviews and fired
him a week after the lawsuit was filed, according to court records.

A
customer during dozens and dozens of visits,
McHenry had considered the restaurant enjoyable, took friends there and
was a generous tipper. After one visit he returned home, saw an
inflammatory receipt and discovered older receipts were similarly
despicable
. When confronted, restaurant employees including manager
Dustin Caratello
repeatedly apologized and attempted to downplay the
bigotry, according to court records.



At the time of the McHenry incidents, the Orange County Young Republicans chose Landmark Steakhouse as their “favorite spot” for monthly drink mixers. We know this because both sides in the litigation tied the group to the dispute in their official filings, and the federal judge noted their presence as well, according to court records.

Just weeks after McHenry filed his lawsuit, an elected member of the Orange County Republican Party emailed fellow Republicans a doctored photograph of Barack Obama that portrayed the president and his parents as chimpanzees.

Obama is scheduled to attend a Thursday Corona del Mar campaign event just blocks away from the Landmark Steakhouse.

In December, an Irvine fast-food restaurant gave two Asian Americans order receipts that referred to them as “Ching” and “Chong.”

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–R. Scott Moxley / OC Weekly

(email: rscottmoxley at ocweekly dot com)

R. Scott Moxley’s award-winning investigative journalism has touched nerves for two decades. An angry congressman threatened to break Moxley’s knee caps. A dirty sheriff promised his critical reporting was irrelevant and then landed in prison. The U.S. House of Representatives debated his work. Federal prosecutors credited his stories for the arrest of a doctor who sold fake medicine to dying patients. Moxley has won Journalist of the Year honors at the Los Angeles Press Club; been named Distinguished Journalist of the Year by the LA Society of Professional Journalists; and hailed by two New York Times Magazine writers for his “herculean job” exposing Southern California law enforcement corruption.

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