Judge orders new trial in Tesla worker’s race bias lawsuit

Last October, a jury awarded Diaz $137 million, the largest ever verdict in a discrimination involving a single worker. Orrick said in April that Tesla was liable to Diaz for discrimination, but he said the award was excessive and reduced it to $15 million.


Tesla is facing lawsuits related to alleged widespread race discrimination and sexual harassment
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Tesla is facing lawsuits related to alleged widespread race discrimination and sexual harassment

A federal judge in California ordered a new trial on Monday over damages from Tesla Inc. for a black former factory worker who accused the company of race discrimination after it turned down a $15 million award. US District Judge William Orrick in San Francisco approved Tesla’s motion for the new test a week after former elevator operator Owen Diaz said he would not accept the judge’s award. Last October, a jury awarded Diaz $137 million, the largest ever verdict in a discrimination involving a single worker. Orrick said in April that Tesla was liable to Diaz for discrimination, but he said the award was excessive and reduced it to $15 million.

Diaz’s lawyers said last week that the lower award was unjust because it undermined her constitutional rights to trial by jury.

Tesla did not immediately respond to a request for comment.

Diaz’s lawyer, Lawrence Organ, said: “We hope that a new jury will look at the same amount of evidence as the first, and that Mr Diaz will get the justice that the jury system should provide him.”

Aurich did not set a date for the new test, but did set a convention for July 12.

In his 2017 lawsuit, Diaz alleged that his associates and a supervisor at Tesla’s Fremont, Calif., assembly plant subjected him to a hostile work environment that included racist slurs, caricatures, and swastikas.

Tesla is facing several lawsuits involving alleged widespread race discrimination and sexual assault at the Fremont factory, including one by the California Civil Rights Agency.

This month, a Tesla shareholder filed a lawsuit accusing the company’s chief executive officer, Elon Musk, and the board of directors of neglecting workers’ complaints and promoting a toxic workplace culture.

Tesla denies wrongdoing and says it has policies in place to prevent and address workplace malpractice.

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