Tesla Defect Arbitration Dispute Remains in Federal Court

A Tesla owner trying to avoid arbitration over alleged defects in his vehicle must make his case in federal court because the lawsuit satisfies the requirements for federal diversity jurisdiction, a federal judge in Hawaii said.

Jerry M. Hiatt is a Hawaii resident, Tesla Inc. is a Delaware corporation with its principal place of business in California, and the amount in controversy exceeds the federal minimum of $75,000, the U.S. District Court for the District of Hawaii said.

Hiatt alleged his vehicle is defective and that Tesla must return the purchase price of more than $50,000 and pay treble damages ...