A former Black factory worker at Tesla, Owen Diaz, has accused the company’s lawyers of engaging in “egregious misconduct” during his race bias case trial, which resulted in a $3.2 million award in his favor. Diaz has requested a third trial to pursue additional compensation, alleging that Tesla’s legal team asked improper questions, baselessly accused a witness of lying, and made misleading statements during closing arguments.
In March 2022, a five-day trial resulted in the award of $3.2 million to Diaz, who claimed he had experienced racial harassment at Tesla’s flagship Fremont, California, assembly plant. However, Tesla’s lawyers are alleged to have improperly questioned Diaz and other witnesses about incidents that were not raised during the previous trial in 2021, which found Tesla liable for Diaz’s racial harassment and awarded him $137 million.
The judge presiding over the case deemed the amount excessive and ordered a retrial on damages, which prevented either party from presenting new evidence or testimony. Diaz’s legal team argues that Tesla’s lawyers improperly questioned him about alleged incidents in which he called a coworker a “dumb Mexican” and sexually harassed female employees, which Diaz denied ever happening.
Diaz’s lawyers contend that the “extraordinary gap” between the first and second jury’s damages verdicts can be explained only by Tesla’s misconduct. The company is accused of asking improper questions, baselessly accusing a witness of lying, and making misleading statements during the trial.
Tesla has denied the allegations, saying that it takes complaints from workers seriously and does not tolerate discrimination. The company has also denied any wrongdoing in other lawsuits claiming employees at its assembly plants and service centers have faced racial or sexual harassment.
In 2017, Diaz sued Tesla, alleging that the company failed to act after he repeatedly complained to managers about coworkers using racist slurs and scrawling swastikas, racist caricatures, and epithets on walls and work areas.
Tesla has moved to lower the award to $1.6 million, arguing that the $3 million award of punitive damages was too large in light of the $175,000 granted to Diaz for emotional distress. The US Supreme Court has stated that punitive damages should not exceed nine times the amount of other damages.
A hearing on the motions is scheduled for July 19, and both sides have declined to comment on the case. Diaz has renewed a motion for a mistrial on similar grounds, which the judge previously denied during the retrial.