Tesla whistleblower secures key victory in legal battle against Musk
What's the story
Cristina Balan, a former engineer at Tesla, has won a significant round in her ongoing legal battle against the company and its CEO Elon Musk.
The dispute dates back to 2014, when Balan flagged safety concerns over a potential design flaw in the braking system of Tesla cars.
After she was fired and won a wrongful termination case, she filed a defamation lawsuit against the company in 2019, which has now been revived by a California appeal court.
Proceedings
Legal journey and Tesla's allegations
Balan, whose initials were once engraved on batteries of Model S vehicles, has been involved in a protracted legal battle since her firing.
She claimed she was worried carpets were curling beneath pedals in some cars, creating safety hazards. However, managers refuted her concerns and she lost her job.
Balan initially won a wrongful termination case but Tesla accused her of misusing company resources for a "secret project," something she always denied.
In 2019, she sued the firm for defamation.
Court decision
Appeals court rules in Balan's favor
After Balan sued, a district court ruled that her case should be settled through arbitration owing to a contract she signed while working for Tesla.
The arbitrator ruled in favor of the company and Musk, dismissing her claims under California's statute of limitations.
However, the US Court of Appeals for the Ninth Circuit quashed the district court's confirmation of the arbitration award, and ruled in favor of Balan saying the district court did not have jurisdiction.
Legal strategy
Balan's response and future plans
Following the ruling, Balan vowed to take Musk on in court.
She said, "We are hoping we will start a new lawsuit and we will have the chance to take on Elon Musk in front of a jury and judge."
The engineer, who has been fighting stage-3B breast cancer, is determined to prove that she is innocent for the sake of her son.
Balan's biggest worry is that she might not live to see her last day in court.