Judge finds Tesla liable to Black former worker who alleged bias, but slashes payout
By Jonathan Stempel and Daniel Wiessner
(Reuters) -A federal choose stated on Wednesday Tesla Inc was liable to a Black elevator operator who stated the electrical automobile firm ignored racial abuse on the manufacturing unit the place he labored, however diminished an almost $137 million jury award to $15 million.
U.S. District Decide William Orrick in San Francisco dominated after jurors final October discovered that Tesla subjected Owen Diaz to a hostile surroundings at Tesla’s manufacturing unit in Fremont, California by permitting and failing to cease the racism he confronted.
Diaz, who labored on the plant for 9 months in 2015 and 2016, stated different workers used racist slurs when chatting with him, and scrawled swastikas and slurs together with the “N-word” on rest room partitions. He additionally stated one supervisor drew a racist caricature close to his workstation.
In a 43-page resolution, Orrick stated the proof amply supported the jury’s discovering Tesla answerable for the “profound” emotional hurt Diaz suffered and the “usually insufficient” disciplinary steps the corporate took.
However the choose diminished Diaz’s compensatory damages to $1.5 million from the “extreme” $6.9 million that the jury awarded, and lowered punitive damages to $13.5 million from the “unconstitutionally massive” $130 million jury award.
Bernard Alexander, a lawyer for Diaz, in an interview stated his shopper plans to enchantment the lowered damages award.
“We’re happy that the courtroom upheld the jury’s discovering that Tesla’s conduct was completely reprehensible,” Alexander stated.
“The award of $15 million is substantial however doesn’t come near reflecting the hurt triggered to Mr. Diaz, or the reprehensibility of Tesla’s conduct,” he added.
Tesla and its legal professionals didn’t instantly reply to requests for remark. The corporate had sought to restrict compensatory and punitive damages to $300,000 every.
Led by billionaire Elon Musk, Tesla faces related claims in different lawsuits.
In a single such case, California’s Division of Honest Employment and Housing alleged in February that Black staff on the Fremont plant endured fixed harassment, however noticed their complaints ignored.
Tesla beforehand referred to as that lawsuit misguided, and stated it has adopted insurance policies to forestall and punish racist conduct.
Compensatory damages are supposed to cowl precise losses, whereas punitive damages are supposed to punish and deter violations.
Beneath U.S. Supreme Courtroom precedent, punitive damages usually must be lower than 10 instances compensatory damages.
Authorized consultants had referred to as Diaz’s unique $137 million award one of many largest for a single plaintiff alleging office discrimination.
The case is Diaz v Tesla Inc et al, U.S. District Courtroom, Northern District of California, No. 17-06748.
(Reporting by Jonathan Stempel and Daniel Wiessner in New York; Enhancing by Christian Schmollinger and Kenneth Maxwell)
