Tesla lawsuit update: Eberhard not declared one of two founders, case not dismissed
by Sebastian Blanco on Jul 29th 2009 at 6:50PM 
There aren't yet any news reports posted about the events in court today surrounding the Tesla Motors lawsuit filed by ex-CEO Martin Eberhard, but we know from a new statement put out by Tesla that the judge struck down Eberhard's request to be declared one of just two founders of the company. Tesla said it was pleased by this decision, and "definitely agree[s] that Eberhard's claims on the founder issue have no legal relevance." The judge did not throw out the case, however, as Musk and the Tesla team asked, so the court proceedings will move forward. That was expected, and means there will likely be plenty more revealed about the turmoil of starting up a company like Tesla in the coming months (read more on the history of the lawsuit here and here). The Tesla Motors statement is available in full after the jump.
While we wait for more updates, the Daily Green's Jim Motavalli puts it succinctly: "I don't care who founded Tesla, only that it ramp up production and get more EVs on the road."
UPDATE: see Eberhard's response here.
Gallery: Jason Calacanis' Tesla Roadster
Photos copyright ©2009 Drew Phillips / Weblogs, Inc.
[Source: Tesla Motors, The Daily Green]
STATEMENT FROM TESLA MOTORS:
We are pleased that the judge struck down Eberhard's claim asking to be "declared" one of only two founders of the company. We have long believed in the concept of a founding team, which includes Elon Musk as well as JB Straubel and other people who played indispensible and positive roles in Tesla's early history. We definitely agree that Eberhard's claims on the founder issue have no legal relevance.
We asked the judge to take the extraordinary step of dismissing the lawsuit, which we still believe is an unfair personal attack and PR stunt that should not burden the court system. The judge acknowledged that it wasn't "in his purview" to rule on the merits of the case at this very early stage, so we look forward to proving the facts in court in the upcoming months. We also look forward to a ruling on our request that the plaintiff revise his original lawsuit and delete some of the most ridiculous and demonstrably false statements and innuendos, including implications that Elon may not have received his undergraduate degrees or been accepted to graduate school at Stanford. Such statements are easily proven false by the most casual observers of the case, and they illustrate the degree to which the original lawsuit is a fictionalized account of Tesla's history. We look forward to setting the record straight in court.
Reader Comments (Page 1 of 1)
Yanquetino 7:08PM (7/29/2009)
Well... unlike Jim Motavalli, I *DO* care who founded Tesla Motors. I fail to see how the world will be better off with myriads of Roadsters on the streets if it is also devoid of ethics, fairness, honesty, integrity, and basic human decency.
Funny how Tesla didn't mention in their statement that the ruling must mean that the judge slapped down their accusation of a SLAPP lawsuit. Eberhard's case apparently does have merit after all.
And we're still waiting to see a scan of the physics diploma, Sebastian.
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stevejust 7:54PM (7/29/2009)
hmmm... I'd love to know which San Mateo judge this is and what precisely was said. Because if Eberhard's can round up some people who've purchased Teslas, then I imagine he could have those people bring a sec. 17200 claim against Tesla for the misrepresentation.
But how the claim of who founded Tesla WOULDN'T matter when one of the claims set forth in the complaint is about soiling Eberhard's business reputation is beyond me. Maybe there will be a writ appealing this (from all I can discern) nonsensical ruling.
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Yanquetino 12:10AM (7/30/2009)
Hey! According to Musk, it looks like we are also a co-founders of Tesla!
http://bit.ly/1WaFGG
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OhmExcited 1:20AM (7/30/2009)
A judge is refusing to toss out a lawsuit by a founder of Tesla Motors that accuses the electric car maker and its chief executive of libel, slander and several other allegations.
Martin Eberhard claims CEO Elon Musk unfairly blamed him for Tesla's well-documented financial woes in interviews with the media and in postings on the company's blogs. Eberhard also is suing to recover a $100,000 severance package the company took away from him because Tesla said he violated a non-disparagement agreement.
Yosef Peretz, who represents Eberhard against Tesla and Musk, says a San Mateo County Superior Court judge issued a written tentative ruling Tuesday refusing to toss out the lawsuit. The ruling says it appears Eberhard's lawsuit will prevail.
http://www.nbcbayarea.com/news/local-beat/Telsa-Legal-Fight-Its-On-52020582.html
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Nick P. 2:59AM (7/30/2009)
Hold on there captain. 100,000K unpaid? Never mind the "founder" status and all the other crap. This is the real issue here:
* You are pushed aside from a struggling start-up you co-founded. OK happens all the time with VCs.
* You signed an NDA refraining you from competing or divulging Tesla secrets. You also agree to wait for your 100K severance because the start-up needs all its money. Normal and reasonable.
* The new CEO slams you in the press and uses the NDA to force you to stay silent. OK, whatever - you're still cool. You've got a new car and some shares in the company.
* Tesla receives a 50Million financing (before the 500Million from the Feds) and refuses to pay you severance citing the NDA. OK that's enough!
This is how the story should have been explained from the start by Martin. Any decent person would understand his *real* beef with Elon and Tesla. Now I hope he wins or they settle out of court by giving him twice the severance.
Go Martin!
Serge 12:36PM (7/30/2009)
Nick you forgot the part, where Martin is supposed to get the second production car, which is somehow delayed (we now know there were discussions to deny him a car alltogether), so somebody else gets the "real car #2." To top it off the car is rear-ended into a truck before delivery (more delays for repairs). Does the driver have an NDA as well and perhaps wants to share his side of the story after it expires?
Throwback 9:19AM (7/30/2009)
These lawsuits always come down to money. That's how it will be settled, Musk will pay off Eberhard and he will go away.
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katiefehrenbacher 9:47AM (7/30/2009)
We interviewed Eberhard's lawyer about the findings too and here's our report on it:
http://earth2tech.com/2009/07/29/court-gives-green-light-for-tesla-founders-lawsuit-to-proceed/
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