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SkyWriting

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Tesla Ordered to Pay $137 Million Over Racism in Rare Verdict

By
Malathi Nayak
and
Dana Hull
October 4, 2021, 7:59 PM EDT Updated on October 5, 2021, 12:24 AM EDT
Tesla Inc. lost a case against a Black former elevator operator and must pay an unprecedented $137 million in damages for having turned a blind eye to racial taunts and offensive graffiti the man endured at the electric carmaker’s auto plant in Fremont, California.

In her closing arguments to the jury, Tesla attorney Tracey ("Karen") Kennedy said
“Mr. Diaz’s story simply doesn’t make sense”
in light of his encouragement to his son and daughter to take up jobs at the company.
(An auto company that is profitable.)
 
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dqhall

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These kind of big verdicts tend to be overturned at the appellate level, so I'm curious to see what happens.
The award exceeds any losses insults might have caused him. It seems like lawyers have license to steal in Fremont, CA. No wonder Tesla moved to Texas.
 
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Arcangl86

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The award exceeds any losses insults might have caused him. It seems like lawyers have license to steal in Fremont, CA. No wonder Tesla moved to Texas.
The vast majority of the award is in punitive damages, not actual damages. They aren't meant to compensate the plaintiff for losses, but rather to punish Tesla so this doesn't happen again. And this isn't a California thing, it's a jury thing. This is why these kind of cases are either forced into arbitration by the employer or settled out of court. Juries love giving large payouts.
 
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Aussie Pete

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The award exceeds any losses insults might have caused him. It seems like lawyers have license to steal in Fremont, CA. No wonder Tesla moved to Texas.
America is notorious for ridiculous lawsuits and even more ridiculous awards. No wonder your healthcare is so expensive. Liability insurance costs a fortune.
 
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Aussie Pete

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The vast majority of the award is in punitive damages, not actual damages. They aren't meant to compensate the plaintiff for losses, but rather to punish Tesla so this doesn't happen again. And this isn't a California thing, it's a jury thing. This is why these kind of cases are either forced into arbitration by the employer or settled out of court. Juries love giving large payouts.
"Juries love giving large payouts." And that is why Australia introduced laws to limit payouts. Sometimes it's unfair on the claimant, but it stops sending legitimate companies to the wall. Public liability insurance costs have crippled many profitable businesses here.

Punish Tesla? Not a bit. They'll jack the price up on their cars, which they cannot make quickly enough. Customers will pay, not Tesla.
 
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Aussie Pete

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These kind of big verdicts tend to be overturned at the appellate level, so I'm curious to see what happens.
Buy your Telsa before the final verdict. Elon will just add the cost to the price of the car.
 
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Arcangl86

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America is notorious for ridiculous lawsuits and even more ridiculous awards. No wonder your healthcare is so expensive. Liability insurance costs a fortune.
This wasn't a medical malpractice case, whic hhas it's own unique elements that make it unpredictable. Even if there was, there is no indication that tort reform will make any difference. The way we know this? In the US things like medical malpractice are handled at the state level. Texas implemented tort reform in the 90s, and their average medical costs are actually slightly above the American norm.
 
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dqhall

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The vast majority of the award is in punitive damages, not actual damages. They aren't meant to compensate the plaintiff for losses, but rather to punish Tesla so this doesn't happen again. And this isn't a California thing, it's a jury thing. This is why these kind of cases are either forced into arbitration by the employer or settled out of court. Juries love giving large payouts.
I did jury duty at a Federal district court. I was called to the jury box for a two day lawsuit trial. The jury did not award the plaintiff anything. It was unanimous. We reached a decision within half an hour.
 
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Aussie Pete

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I did jury duty at a Federal district court. I was called to the jury box for a two day lawsuit trial. The jury did not award the plaintiff anything. It was unanimous. We reached a decision within half an hour.
Good point. The media usually only reports the sensational.
 
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JimR-OCDS

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Usually racial discrimination cases are settled out of court.

Tesla decided to fight this one as they thought they had the documentation
to prove their case.

This is why black people have a difficult time finding jobs unless they have
good references on the inside. A company which hires a black person and
has to let them go for poor performance, is an automatic lawsuit that will
be made by the person, knowing that the company will end up settling rather
than go public in a court case. My manager was advised on this by a black
rep from HR years ago. He stressed that managers need to document every
employee's performance and give reviews every six months regardless of
pay increases or not.
 
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