Photo: Tesla
If you do not remember who Owen Diaz is, we’ll refresh your memory. He is a former contract worker who sued Tesla for having to hear racist slurs while working in Fremont. Diaz won one of the most considerable amounts in punitive damages for racism: $130 million. With the emotional distress compensation of $6.9 million, he would receive 136.9 million in total until a judge lowered that to $15 million. Diaz will battle Tesla again in court for that.
Curiously, that was a request Tesla made in its appeal to reduce the damages. The federal judge William Orrick refused Tesla’s request for a new judgment but granted it the reduction of the awards. If Diaz accepted it, that would be the end of the story. According to Reuters, he rejected it.
At first, Diaz’s attorneys tried to appeal that ruling, but Orrick denied it. The former contract worker really had only two options: accept the lower damages or face Tesla in court for a new trial, which was what he chose to do.
Diaz’s lawyers responded that Orrick’s decision demonstrated how federal judges have a “systemic bias” against juries, which would violate the constitutional right that plaintiffs have to submit their lawsuits to them. Diaz is asking a new jury to decide the case.
While it may seem like Tesla has an advantage here, the context is much more favorable to Diaz than when he first went to court. At the time, racism cases in Fremont were just starting to emerge. Now, Tesla is facing several lawsuits for bad working conditions, including some for sexual harassment. The California Department of Fair Employment and Housing (DFEH) is also suing the company for hundreds of complaints about racism.
Diaz presents this as the main reason for him to be willing to go to court again. According to his lawyers, the lower award would not make Tesla act against racism on its premises. In other words, Tesla would just pay and keep business as usual. He also said that the reduced damages were unjust. Diaz wants a new jury to decide about that. We would not be surprised if Tesla ended up having to pay an even higher award than the $136.9 million this time.
At first, Diaz’s attorneys tried to appeal that ruling, but Orrick denied it. The former contract worker really had only two options: accept the lower damages or face Tesla in court for a new trial, which was what he chose to do.
Diaz’s lawyers responded that Orrick’s decision demonstrated how federal judges have a “systemic bias” against juries, which would violate the constitutional right that plaintiffs have to submit their lawsuits to them. Diaz is asking a new jury to decide the case.
While it may seem like Tesla has an advantage here, the context is much more favorable to Diaz than when he first went to court. At the time, racism cases in Fremont were just starting to emerge. Now, Tesla is facing several lawsuits for bad working conditions, including some for sexual harassment. The California Department of Fair Employment and Housing (DFEH) is also suing the company for hundreds of complaints about racism.
Diaz presents this as the main reason for him to be willing to go to court again. According to his lawyers, the lower award would not make Tesla act against racism on its premises. In other words, Tesla would just pay and keep business as usual. He also said that the reduced damages were unjust. Diaz wants a new jury to decide about that. We would not be surprised if Tesla ended up having to pay an even higher award than the $136.9 million this time.
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