Tesla faces new race-bias trial from employee who had verdict cut

The jury in 2021 awarded Diaz nearly US$7 million in compensatory damages for emotional distress, and US$130 million in punitive damages, designed to punish unlawful conduct and deter it in the future. Orrick last year reduced the compensatory damages to US$1.5 million and the punitive damages to US$13.5 million.

Employment discrimination cases rarely yield verdicts of more than US$1 million, let alone nine-figure sums. The U.S. Supreme Court has said punitive damages typically should be no more than 10 times compensatory damages.Article content A photo of a hand-drawn racist caricature Owen Diaz alleges he found on a bale of cardboard at a Tesla facilityLawrence 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 is focused on trying to get that number to zero,” Organ said, “but that’s a very cynical view to have a Black man racially harassed and suggest that is not worth a lot of money.

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