Cristina Balan, the Tesla whistleblower who has long challenged Elon Musk and the company in court, has emerged victorious in the latest phase of a protracted legal dispute.
Balan, an engineer, was dismissed from her role in 2014 after she raised concerns about a potential safety issue related to a design flaw that could impact the vehicles' braking systems.
Her defamation case seemed to stall when a judge upheld an arbitration ruling that dismissed her claims. However, in a significant turn of events, an appellate panel in California reversed this decision, ruling in her favor.
In an interview with BBC News, Balan expressed her desire to take Tesla and Musk to court, stating, "I want the opportunity to face them openly in front of a jury."
Tesla has yet to comment on the development.
Balan believes the case will effectively be reset, allowing her to initiate new legal proceedings. "We’re hopeful we can begin a fresh lawsuit and have the chance to present our case before a jury and judge," she said.
Once a prominent figure at Tesla, Balan’s initials were even etched on the batteries of the Model S vehicles. She previously shared her determination to clear her name for the sake of her son, revealing that she was in remission from stage-3B breast cancer and feared she might not survive to see the case concluded.
Balan initially raised concerns about curling carpets beneath pedals in Tesla models, which she believed posed a safety risk. When her concerns were dismissed, she was met with hostility and ultimately lost her job. Afterward, she won a wrongful termination case, but this marked the beginning of a lengthy legal battle.
Tesla publicly accused Balan of using company resources for a "secret project," an allegation that bordered on embezzlement. She has steadfastly denied these accusations and filed a defamation lawsuit in 2019 to clear her name.
"I want to clear my name," Balan told BBC News. "I wish Elon Musk had the decency to apologize."
The court initially ruled that Balan’s case should be resolved through arbitration, based on a contract she signed while employed at Tesla.
The arbitrator sided with Tesla and Musk, dismissing her claims due to California's statute of limitations, which barred the case due to the passage of time since the alleged defamation.
Tesla sought to have the arbitration decision confirmed in a district court in California. However, Balan appealed, and the Ninth Circuit Court of Appeals ruled in her favor.
The appellate judges determined that the California district court lacked jurisdiction over the case, ordering the arbitration award to be annulled and the district court to dismiss the action.
Source: BBC News
BDST: 1252 HRS, April 17, 2025
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