Last year, a judge slashed the $137 million verdict that the jury awarded in 2021 to plaintiff Owen Diaz, one of the largest ever in a U.S. workplace discrimination case.
After the 2021 trial, U.S. District Judge William Orrick agreed with a jury that Tesla was liable for race discrimination but cut the verdict to $15 million. Orrick is also presiding over this week's trial, and has barred both sides from presenting new evidence or calling new witnesses.
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. Employment discrimination cases rarely yield verdicts of more than $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.
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