A Tesla whistleblower who has fought Elon Musk and his company through the courts for years has won the latest round of a long-running legal battle.
Cristina Balan, a former Tesla engineer who raised safety concerns about a potential braking flaw in 2014, has won a significant victory in her years-long legal battle against Elon Musk and the company. After being fired and initially losing her defamation case when a judge upheld an arbitration ruling against her, Balanâs fight took a turn when a California appeals court overturned that decision, reviving her claim and marking a major step forward in her pursuit of justice.
Balan told BBC News that her legal battle with Tesla is effectively starting over, with hopes of launching a new lawsuit that would allow her to face Elon Musk in front of a jury and judge.
Her defamation claim against the firm seemed to have run out of road when a judge confirmed an arbitration decision dismissing her case – but a panel of appeal judges in California has reversed this decision in her favour.
She told BBC News she now wants to face Elon Musk and Tesla in open court.
Tesla has not responded to a request for comment.
Ms Balan said she believes the case will now in effect go back to square one, and new proceedings can be launched.
“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,” she said.
The engineer was once so prominent at Tesla that her initials were engraved on the batteries inside Model S vehicles.
Once a prominent engineer at the companyâwith her initials engraved on Model S batteriesâBalan remains determined to clear her name, driven by a desire to prove her innocence for her son. In a previous interview, she also revealed she was in remission from stage-3B breast cancer and feared she might not live to see the end of her court fight.
Cristina Balan
Ms Balan claimed she was worried the carpets were curling underneath some pedals in Tesla models, creating a safety hazard.
She said managers rebuffed her concerns, became hostile, and she lost her job.
She then won a wrongful dismissal case – but this turned out to be the start of a long journey through the courts.
Ms Balan was publicly accused by Tesla of using its resources for a “secret project” – accusations which amount to embezzlement, a crime under US law.
She has consistently denied the accusation, and decided to bring a defamation case against the firm in 2019.
“I want to clear my name,” she told BBC News last year.
“I wish Elon Musk had the decency to apologise.”
The initials CB on a Tesla Model S battery, following Cristina Balan’s design input
A court then decided Ms Balan’s case should be subject to arbitration per a contract she signed while working for Tesla.
The arbitrator found in favour of the firm and Musk, dismissing her claims, due to California’s statute of limitations – meaning too much time had passed since the alleged defamatory statements were made.
Tesla brought the case back to a district court in California to have the decision confirmed.
However, Ms Balan appealed this decision, and judges from the US Court of Appeals for the Ninth Circuit found in her favour – in effect deciding the California court did not have the jurisdiction to make its judgement.
They have ordered for the confirmation of the arbitration award to be cancelled, and for the district court to dismiss the action due to its lack of jurisdiction.
What could happen next?
The majority of legal experts the BBC has spoken to believe the case has some way to go before there will be any conclusion.
“Tesla is among the many corporations that force employees and customers into opaque arbitration processes and deploy aggressive strategies to retaliate against employees who voice criticism of corporate practices,” said Stanford professor Anat Admati.
And Bill Moran, Ms Balan’s attorney, agreed the legal process is far from over.
But he said the case was “revived” by the latest ruling.
“We are confident we can secure her either a new arbitration or alternatively a trial in court so that her case can be heard on the merits after so many years,” he said.
“She has fought cancer while waging this case… she is the epitome of strength and resolve, and she is now one step closer to getting the justice she deserves.”