Photo: Tesla/Plain Site/edited by autoevolution
After Owen Diaz rejected the damages he would receive after winning his lawsuit against Tesla for racism, a new trial was certain. This is why the latest decision from federal judge William Orrick is no surprise. On July 12, he determined that the involved parties would have a trial-setting conference to decide on the new trial. However, this new judgment will be less about racism and more about other legal aspects involved.
Orrick said in his decision that Tesla was denied a new trial on liability. In other words, there is nothing to discuss regarding its guilt in allowing Fremont to have a racist working environment. Diaz and hundreds of other African-American workers have already made it clear that they feel threatened to work for the EV maker. The only aspect that will be discussed will be the punitive and compensatory damages the former contract worker has to receive.
The first jury trial decided that Diaz would get $6.9 million in compensatory damages and $130 million in punitive damages. The goal of punitive damages is to set an example so that Tesla and other companies do more to prevent racism. Tesla appealed the decision, and Orrick lowered these damages, respectively, to $1.5 million and $13.5 million, reducing the total from $136.9 million to $15 million.
According to Reuters, Diaz’s lawyers want a new trial because Orrick’s decision was unjust, undermining his constitutional right to a trial by jury. To be more straightforward, if the jury granted him $136.9 million, reducing that amount makes it seem that the jury’s decision does not count. Ultimately, that’s the most crucial discussion the next trial will promote.
The $130 million in punitive damages are among the highest compensations ever given to a single worker in a discrimination case. However, Diaz was just lucky to be the person involved in this situation. As we mentioned before, the punitive damages are not specifically about him. They are about making it hurt so much in Tesla’s pockets that the company will finally take action and promote a better and safer working environment for everyone.
If the new jury gives him a lower compensation than the first jury decided Diaz should get, that will probably end the discussion. After all, a new jury will agree with Orrick that the damages were excessive. If they confirm or even exceed the compensations the first jury decided to grant him, we have no idea if Tesla may appeal again and what that would lead to in legal terms.
Whatever the outcome of the new trial is, it will just be another racism lawsuit for Tesla to deal with. There are plenty more in courts in the U.S., including one in which California’s Department of Fair Employment and Housing (DFEH) accuses the EV maker of “systematic racial discrimination and harassment” after receiving “hundreds of complaints about working conditions” there. Tesla may lose a lot more money if it does not grab the bull by the horns and solve this once and for all.
The first jury trial decided that Diaz would get $6.9 million in compensatory damages and $130 million in punitive damages. The goal of punitive damages is to set an example so that Tesla and other companies do more to prevent racism. Tesla appealed the decision, and Orrick lowered these damages, respectively, to $1.5 million and $13.5 million, reducing the total from $136.9 million to $15 million.
According to Reuters, Diaz’s lawyers want a new trial because Orrick’s decision was unjust, undermining his constitutional right to a trial by jury. To be more straightforward, if the jury granted him $136.9 million, reducing that amount makes it seem that the jury’s decision does not count. Ultimately, that’s the most crucial discussion the next trial will promote.
The $130 million in punitive damages are among the highest compensations ever given to a single worker in a discrimination case. However, Diaz was just lucky to be the person involved in this situation. As we mentioned before, the punitive damages are not specifically about him. They are about making it hurt so much in Tesla’s pockets that the company will finally take action and promote a better and safer working environment for everyone.
If the new jury gives him a lower compensation than the first jury decided Diaz should get, that will probably end the discussion. After all, a new jury will agree with Orrick that the damages were excessive. If they confirm or even exceed the compensations the first jury decided to grant him, we have no idea if Tesla may appeal again and what that would lead to in legal terms.
Whatever the outcome of the new trial is, it will just be another racism lawsuit for Tesla to deal with. There are plenty more in courts in the U.S., including one in which California’s Department of Fair Employment and Housing (DFEH) accuses the EV maker of “systematic racial discrimination and harassment” after receiving “hundreds of complaints about working conditions” there. Tesla may lose a lot more money if it does not grab the bull by the horns and solve this once and for all.
Updated! Di-az v. Tesla, Inc.: https://t.co/d1elHx61Gg $TSLA pic.twitter.com/tyqntO7kpa
— PlainSite (@PlainSite) June 28, 2022
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