California court deems Tesla liable for fraud in Solar Roof suit after discovery failures

According to Electrek, San Diego Superior Court Judge Cynthia Freeland deemed Tesla liable for fraud and negligent misrepresentation in Conroy v. Tesla, in a Sept. 11 minute order. Tesla had already stipulated to breach of contract, breach of warranty and negligence in an Oct. 20 joint report. The trial is now limited to compensatory and punitive damages.

The ruling stems from discovery failures. Tesla was hit with two discovery sanctions ($15,467.50 and $13,500) for not producing a proper privilege log and responsive documents, then missed the next deadline; the judge found "ample evidence to support that Defendants have acted willfully." Withheld material included Microsoft Teams messages, OSHA logs, emails with county inspectors and more than 20 reports from Tesla's internal Bolt system. The plaintiff's side says a January 2021 text describes Tesla "experimenting" on the home; Electrek has not seen the texts.

Homeowner Ambrose Conroy of Rancho Santa Fe signed for a 13.1 kW system at $82,210; after two amendments it grew to an 18.2 kW roof and six Powerwalls at roughly $110,000. He estimates repairs at "well over $2.5 million," and says Tesla's April 2022 settlement offer was $5,000 (plaintiff's claims).

Timing is fluid. The Nov. 20 trial date was vacated and a trial readiness conference is set for Dec. 4. After the judge denied reconsideration on Oct. 27, Tesla asked to stay the case while petitioning the California Court of Appeal, arguing the sanction is unduly punitive and amounts to a directed verdict on fraud. It is a single case, but the size of any punitive award is the variable to watch.