Tesla faces new race bias trial from employee who had $137 mln verdict cut

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A trial kicks off in San Francisco federal court on Monday to determine how much money Tesla Inc must pay to a Black elevator operator who a jury determined…

Diaz sued Tesla for causing him emotional distress under a California law prohibiting employers from failing to prevent hostile work environments based on race and other protected traits.

Orrick last year reduced the compensatory damages to $1.5 million and the punitive damages to $13.5 million. He said that sum acknowledged the pervasive harassment Diaz faced while reflecting that he had worked at the factory for only nine months and had not alleged any physical injury or illness. Lawrence Organ, a lawyer for Diaz, said he hoped the new jury would return a larger verdict than the $15 million award offered by Orrick and convince the judge higher damages are warranted.

Tesla has said it does not tolerate discrimination, and its lawyers did not respond to requests for comment. The company had urged Orrick to reduce the original jury award to no more than $600,000.

 

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