From 2010 to 2014, Cristina Balan worked at Tesla, helping design the Model S battery pack. Her initials, “CB,” were etched on the batteries. In 2014, she pointed out a flaw that could affect braking, noting carpets might curl under pedals. She says this got her fired. She later won a wrongful dismissal case. Then, Tesla accused her of embezzlement, claiming she used company resources for a hidden project. Balan denied this and filed a defamation lawsuit in 2019 to clear her name.
Legal Steps
The defamation case went to arbitration. In November 2021, the arbitrator rejected Balan’s claims, partly because California’s statute of limitations had run out, issuing a zero-dollar award. Tesla asked a federal court in Northern California to confirm this, and Judge Haywood S. Gilliam, Jr. did so in September 2022.
Balan appealed, arguing the federal court shouldn’t have taken the case. On April 14, 2025, the Ninth Circuit agreed, citing a 2022 Supreme Court case, Badgerow v. Walters. They said the zero-dollar award didn’t meet the $75,000 needed for federal jurisdiction under 28 U.S.C. § 1332(a). The court sent the case back, telling the lower court to dismiss it for lack of jurisdiction.
Where Things Stand
The arbitration decision against Balan’s defamation claims still holds unless she challenges it elsewhere, like state court, where rules might differ. This win gives Balan a chance to keep fighting, matching her wish to confront Tesla and Musk in open court. No new lawsuit has started, and success isn’t certain.
Balan, in remission from stage-3B breast cancer, worries she won’t live to see her case end. She’s also said she wants an apology from Elon Musk for the embezzlement claims. Tesla hasn’t responded to questions about the ruling.
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