A San Francisco federal jury has ordered Tesla to pay $3 million in punitive damages and $175,000 in financial damages to Owen Diaz, a former elevator operator on the firm’s manufacturing unit in Fremont, California, after he endured a racially hostile work atmosphere throughout his time on the firm.
Diaz, a Black man, was employed as a contract employee at Tesla in 2015 by a staffing company.
He was beforehand awarded a verdict of $137 million in 2021, together with punitive damages, after a jury decided Diaz had suffered civil rights violations at Tesla, and that the electrical car maker didn’t take all cheap steps to finish and forestall the racist harassment.
Diaz and Tesla sought a retrial to determine damages after Choose William H. Orrick diminished the quantity to $15 million.
A distressed and at occasions tearful Diaz advised the courtroom once more final week about how his colleagues at Tesla used racist epithets to denigrate him and different Black staff, made him really feel bodily unsafe at work, advised him to “return to Africa” and left racist graffiti within the restrooms and a racist drawing in his workspace.
The drawing left at his workspace was a rudimentary one which resembled Inki the Caveman, a Nineteen Fifties period cartoon extensively considered racist, whose major character is a Black boy portrayed with large lips, carrying a loincloth, earrings, and a bone by his hair.
Diaz additionally testified that whereas he had inspired his son to work at Tesla, he now considers that one of many best regrets of his life as a result of his son was additionally uncovered to a racially hostile office there.
Counsel for the plaintiff, Bernard Alexander of Morrison Alexander & Fehr, in his closing arguments urged the jury to carry Tesla accountable for failing to cease and forestall the racist harassment of workers, and for the struggling Diaz endured.
”No Black man in 2015 ought to ever be subjected,” Alexander mentioned, “to this plantation mentality office.”
Alexander additionally urged jurors to determine on damages in an quantity that “will get Tesla’s consideration.” He characterised Tesla an organization that has to accuse others of mendacity, as a result of they can’t clarify why they’d enable violations of the Civil Rights Act at their manufacturing unit.
The plaintiffs requested the jury to think about punitive damages round $150 million for Tesla, and to award Diaz $6.3 million in previous non-economic damages, and $2 million in future non-economic damages.
Tesla counsel Alex Spiro argued that Diaz ought to solely be awarded damages amounting to about half of his wage, some tens of hundreds of {dollars}, not tens of millions. Diaz had not disclosed his wage through the course of the trial, Choose William Orrick mentioned within the midst of Spiro’s closing argument final week on Friday.
Spiro additionally advised jurors on Friday that Diaz “lied to you.” He characterised the previous Tesla contract employee as a confrontational individual, who exaggerated points in his testimony repeatedly. Diaz had beforehand mis-stated the variety of months he had labored at Tesla, Spiro mentioned. Spiro additionally accused Diaz of mendacity about his struggling to a physician to be able to search higher financial damages from the corporate.
Evoking the Civil Rights Act, Diaz’s legal professional referred to as on jurors to make an instance of Tesla, saying “Do justice and justice is just not low-cost.”
Tesla has been sued greater than 200 occasions by present or former contractors and workers since 2018 within the U.S., in line with authorized information database Plainsite. That quantity doesn’t account for disputes which have gone straight to arbitration. As CNBC has beforehand reported, the place it’s authorized to take action, Tesla has compelled workers to comply with obligatory arbitration.
Final week, a former Tesla service supervisor, a Black man named John Goode, filed a lawsuit in Northern California alleging {that a} white man who was his supervisor in Georgia repeatedly made racist remarks in his presence, was racially biased in opposition to him and one other Black colleague, had him fired on false pretenses in retaliation after Goode objected to this therapy.