Posts Tagged: $137

Jury reduces Tesla’s $137 million racism lawsuit penalty to $3.2 million

Back in 2021, a San Francisco court ordered Tesla to pay Owen Diaz, a former Black contract worker who accused the company of enabling a racist workplace, $ 137 million in damages. It was one of the highest amounts awarded to an individual suing on the basis of discrimination, but the appeals that followed had lowered it significantly. While US District Judge William Orrick affirmed the jury's original verdict, he found the original damages awarded to Diaz "excessive" and lowered the total to $ 15 million. Now, a San Francisco federal jury has reduced the amount even further and has ordered Tesla to pay Diaz $ 3.2 million only. 

The former elevator operator at Tesla’s Fremont assembly plant rejected the $ 15 million award Orrick had proposed and instead sought for a retrial. In the latest hearing, Diaz again recounted his experiences working for Tesla, where he said he and his fellow Black workers were subjected to racial slurs. He also said that he was made to feel unsafe at work and that other workers left drawings of swastika and racist graffiti, such as Inki the Caveman, in his workspace and the company restrooms. 

Diaz's lawyers urged the jury to penalize Tesla, a company currently worth over $ 600 billion, an amount that will get its attention. But Tesla's lawyer Alex Spiro reportedly argued that Diaz should only be awarded half his salary. He apparently characterized Diaz as a liar in court, who misstated how long he worked at the automaker and who exaggerated his testimonies and the abuse he suffered to gain a bigger payout. 

We may not be seeing the end to this case, though. According to the Los Angeles Times, Diaz's lawyer believes the jury decided on awarding him only $ 3 million in punitive damages and $ 175,000 in non-economic damages because he was wrongly attacked by the defense. He said Tesla's strategy to "minimize and sanitize" worked and that he has already filed a request for a new trial due to "misconduct."

This article originally appeared on Engadget at https://www.engadget.com/jury-reduces-teslas-137-million-racism-lawsuit-penalty-to-32-million-060414307.html?src=rss
Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Tesla must pay $137 million in discrimination lawsuit

Tesla has been ordered to pay $ 137 million in damages to a former Black worker who accused the company of turning a blind eye to discrimination and racial abuse at the company's EV plant in Fremont California, the Washington Post has reported. A San Francisco federal court jury awarded the judgement — reportedly one of the largest in an individual race discrimination employment case — to Owen Diaz, an elevator operator who worked as a contract employee in 2015 and 2016.

In the lawsuit, Diaz alleged that he faced discrimination "straight from the Jim Crow era," in which he was subjected to racial slurs. He alleged that Tesla employees left drawings of swastikas, racist graffiti and offensive cartoons around the plant, while supervisors neglected to halt the abuse. "Tesla's progressive image was a façade papering over its regressive, demeaning treatment of African-American employees," according to the lawsuit. 

The jury awarded Diaz $ 6.9 million for emotional distress, but the majority, $ 130 million, was punitive damages against Tesla. "It's a great thing when one of the richest corporations in America has to have a reckoning of the abhorrent conditions at its factory for Black people," said the lawyer for Diaz, Lawrence Organ. 

"It took four long years to get to this point,” Diaz told the New York Times. “It’s like a big weight has been pulled off my shoulders.”

In response to the verdict, Tesla downplayed the allegations in a blog post written by human resources VP Valerie Capers Workman. "In addition to Mr. Diaz, three other witnesses (all non-Tesla contract employees) testified at trial that they regularly heard racial slurs (including the N-word) on the Fremont factory floor,” she wrote. “While they all agreed that the use of the N-word was not appropriate in the workplace, they also agreed that most of the time they thought the language was used in a ‘friendly’ manner and usually by African-American colleagues.”

Tesla added that it was responsive to Mr. Diaz's complaints, firing two contractors and suspending another. She said that while the facts didn't justify the verdict, the company was "not perfect" in 2015 and 2016, "but we have come a long way." The company has yet to say whether it plans to appeal.

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics