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Judge Reduces $137 Million Penalty Against Tesla in Racism Case

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April 15, 2022
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Judge Reduces $137 Million Penalty Against Tesla in Racism Case
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A federal choose has considerably lowered a $137 million damages award in opposition to Tesla in a lawsuit by a employee who stated he had encountered racism on the job within the electric-car maker’s meeting plant.

The jury’s award, delivered in October, was pared to $15 million on Wednesday by Choose William H. Orrick of the U.S. District Court docket in San Francisco. The sum represents $1.5 million in compensatory damages and $13.5 million in punitive damages.

The plaintiff, Owen Diaz, stated he was the item of racial slurs by a supervisor and different colleagues whereas he labored within the Tesla manufacturing unit in Fremont, Calif., in 2015 and 2016 as the worker of a staffing agency. He gave an account of his expertise in a 2018 article in The New York Instances.

The jury affirmed Mr. Diaz’s assertion that Tesla created a hostile work surroundings by failing to deal with the racism he confronted. Mr. Diaz stated that regardless of repeated complaints, Tesla had executed little to take care of episodes that included drawings of derogatory caricatures of Black youngsters, swastikas and a scrawled racial epithet in a rest room stall and across the manufacturing unit.

“Regardless of Tesla’s makes an attempt to characterize it some other method, its therapy of Diaz — and the therapy of its supervisors and workers (or contractors) — falls excessive on the reprehensibility scale,” Choose Orrick stated in his ruling on Wednesday.

He rejected Tesla’s movement for a brand new trial.

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Tags: caseJudgemillionpenaltyracismReducesTesla
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