A federal jury in Phoenix ordered Uber on Thursday to pay $8.5 million after discovering it liable in a lawsuit introduced by a lady who stated she was sexually assaulted by a driver, a verdict that might affect 1000’s of comparable instances in opposition to the ride-hailing firm.
The case, introduced by plaintiff Jaylynn Dean, was the primary trial – generally known as a “bellwether” – of greater than 3,000 comparable lawsuits in opposition to Uber which have been consolidated in federal court docket. Bellwether trials are used to check authorized theories and assist gauge the worth of claims for doable settlements.
The jury discovered that the driving force was an agent of Uber, so the corporate was answerable for his actions. They awarded Dean $8.5 million in compensatory damages however declined to award punitive damages. Attorneys for Dean had sought greater than $140 million in damages.
In an announcement, an Uber spokesperson famous that the jury rejected Dean’s different claims, that the corporate was negligent or that its security programs had been faulty, including that the corporate plans to attraction. “This verdict affirms that Uber acted responsibly and has invested meaningfully in rider security,” the spokesperson stated.
Sarah London, an lawyer for Dean, stated the decision “validates the 1000’s of survivors who’ve come ahead at nice private danger to demand accountability in opposition to Uber for its deal with revenue over passenger security.”
Uber shares fell 0.5% in prolonged buying and selling following announcement of the decision.
Dean, an Oklahoma resident, sued Uber in 2023, one month after her alleged assault in Arizona. She stated Uber was conscious of a wave of sexual assaults dedicated by its drivers, however had didn’t take fundamental actions to enhance the security of its riders. Such assertions have lengthy dogged the corporate, drawing headlines and congressional scrutiny.
Alexandra Walsh, an lawyer for Dean, stated in the course of the trial’s closing arguments that Uber had marketed itself as a protected choice for ladies touring at night time, significantly if that they had been consuming.
“Girls comprehend it’s a harmful world. We all know concerning the danger of sexual assault,” Walsh stated. “They made us consider that this was a spot that was protected from that.”
Uber says not answerable for driver actions
Uber, which has confronted quite a few security controversies, together with allegations of lax driver vetting and a tradition critics stated prioritized development over passenger safety, has argued that it shouldn’t be held responsible for legal conduct by drivers who use its platform, saying that its background checks and disclosures about assaults are enough.
The corporate maintains that its drivers are impartial contractors somewhat than workers, and that no matter their classification it can’t be answerable for actions that fall exterior the scope of what might fairly be thought of their duties.
“He had no legal historical past. None,” Kim Bueno, an lawyer for Uber, stated of the driving force throughout closing arguments, noting that he had 10,000 journeys on the app and a virtually good score from riders. “Was this foreseeable to Uber? And the reply to that needs to be no.”
Dean’s lawsuit stated she was intoxicated when she employed an Uber driver to take her from her boyfriend’s dwelling to her resort.
The driving force requested her harassing questions on the journey earlier than stopping the automobile and raping her, Dean alleged within the lawsuit.
US District Decide Charles Breyer, who usually sits on the bench in San Francisco, oversaw Dean’s case in Phoenix. Breyer is managing all the comparable federal instances in opposition to Uber, which have been centralized in his court docket in San Francisco.
The corporate can be going through greater than 500 instances in California state court docket. In the one a kind of instances to go to trial thus far, a jury in September sided with Uber. The jury discovered that whereas the corporate had been negligent with its security measures, that negligence was not a considerable consider inflicting the lady’s hurt.
Uber rival Lyft is going through comparable lawsuits in each state and federal court docket, though there isn’t any coordinated federal litigation for these claims. Shares of Lyft had been down 1% after the decision.
