An arbitrator awarded $40 million against Uber and its driver to the parents of Emily Normandin-Parker, killed on a California freeway in 2023.

159 points•dataflow•10 days ago•192 comments•

192 comments

calibas10 days ago
> Stone rejected Uber's argument that it is "merely a technology company" connecting riders with drivers, finding that Uber provides transportation services to the public through its app, sets prices and controls key aspects of the rider experience.

> The arbitrator also rejected Uber's argument that Proposition 22 -- a California ballot measure approved by voters in 2020 that allows companies to classify app-based drivers as independent contractors instead of employees -- prevented the company from being held liable for Tran's conduct.

The dream of every major tech company, making ridiculous profits while taking zero legal responsibility for what you create...

xhkkffbf10 days ago
The bad guy here is the driver. Could Uber have done more? That's what the arbitrators concluded.

But the reality is that this is a victory for the driverless cars (Waymo, Tesla, etc.). If you want to force Uber to take responsibility for the driver, the simplest thing is to get rid of the driver.

joshstrange10 days ago
> The bad guy here is the driver.

We can agree that the driver made bad choices but I feel like you are skimming over the 2 women's responsibility in this situation. Intoxicated to the point of vomiting, arguing over the cleaning fee, and wandering away from the car while parked, yes illegally, on the freeway.

Not sure what your experiences have been with drunk people but I can tell you that dealing with 1 drunk person can be hard to control, let alone 2.

I'd be interested to hear where other people draw the line on the driver's culpability. If he left them at a gas station and one of them was still hit and killed by a car would he still be at fault? In my mind Uber/Lyft provide transportation, they aren't babysitters, there has to be a limit to their responsibility. Perhaps the driver was more at fault here but this outcome (how the driver reacted) is not in the slightest bit surprising to me given everything I know about Uber and how it treats drivers and passengers.

c2210 days ago
This sounds about right. When Uber's driverless car killed someone they got off pretty easy:

*"In March 2019, Arizona prosecutors ruled that Uber was not criminally responsible for the crash. The back-up driver of the vehicle was charged with negligent homicide, pled guilty to endangerment, and was sentenced to three years' probation." [0]

0:https://en.wikipedia.org/wiki/Death_of_Elaine_Herzberg

josefx10 days ago
> The bad guy here is the driver. Could Uber have done more?

Isn't their entire business model build around bypassing the regulations build around the taxi industry? Things like training for new drivers and I think they even refused to do mandatory background checks early on.

> If you want to force Uber to take responsibility for the driver, the simplest thing is to get rid of the driver.

When their driverless car ran over a cyclist they pretended it was too dark to see anything, using a video from a cheap camera as "evidence".

sandeepkd9 days ago
Yes the driver made a poor decision in a situation that he was not trained for. However enrolling and onboarding the driver is a part of Uber's process. The situation may have been avoided if Uber had this strict clause in its onboarding manual to never stop the car or drop the passenger at unsafe spot. The driver and rider are bound by the Uber negotiated contract atleast until the end of ride.

On the driverless cars, the chances are that the companies would come up with some innovative legal clause to add to their terms and services to avoid taking any liability from the driverless car's action.

gamblor9569 days ago
A company is liable for the actions of its workers whether they are W2 employees or 1099 independent contractors. That distinction governs the relationship between the worker and the company, not the company and its customers.

A worker's criminal actions also usually do not entail criminal liability for the company except in very rare situations.

enahs-sf10 days ago
So Uber ToS requires you to accept arbitration, then, when they are found responsible for damages, they still don’t want to pay. Seems pretty shitty for the consumer.
itopaloglu8310 days ago
Forced arbitration is creating a parallel legal system where certain companies are excluded from the consequences of their own actions. One might even say they’re becoming a protected class even.
mchusma10 days ago
I have been on both sides of arbitration, winning and losing. It’s much better. Basically legislation done right (for civil matters).

The only people who really win from traditional legislation are lawyers (and plaintiffs counsel who use the long expensive process to blackmail people - which is 90% of civil cases)

skybrian10 days ago
In this case, that doesn't seem to be what happened? The judge ruled against them.
TZubiri10 days ago
Worth noting that this is only for the civil responsibility, that is, deciding the award of damages.

The criminal charges, if any, whether to the driver or to Uber management (possibly from the sham structuring of worker categorization and corporate structure in order to reduce tax liabilities while reducing control and thus endangering consumers) are proper in state criminal courts and can never be delegated to private courts.

waiwai93310 days ago
I don't think there's anything to suggest Uber refused to pay the arbitration award? They just stated that they disagreed with the outcome.

(Which is not to say there's not plenty to dislike about this whole case, including the fact it's forced arbitration...)

nutjob210 days ago
In that case why is there a "settlement agreement" mentioned that has a $10M penalty for disparagement? Not sure what that refers to exactly but how can Uber (try to) dictate terms in the settlement?

It does seem they're trying to get out of it somehow.

enahs-sf10 days ago
Moreso it’s them whining about losing when and trying to add a non-disparagement clause at $10m per event to the settlement for even factual information relating to the case.

Uber were the ones who forced arbitration ostensibly because it often lowers their overall legal and damages bills.

traceroute6610 days ago
> Uber ToS requires you to accept arbitration

First to be clear, I am speaking in general terms. I know nothing about this case, I don't want to know anything about this case, but I have just scrolled through people's thoughts on arbitration here and thought I should offer a general alternative perspective. To be clear I'm not interested in blindly defending Uber either. So here goes...

Arbitration clauses will be found pretty much everywhere. They come under the auspice of Alternative Dispute Resolution (ADR) of which the top-three ways are: mediation, arbitration and ombudsmen.

The whole point of ADR is that:

1. there are only so many courts in a given jurisdiction and there are only so many judges in any jurisdiction, and both courts and judges tend to have large backlogs.

2. added to which going to court is expensive and time consuming. And if the other side has deep pockets and you loose, you end up paying the hourly rates of very expensive lawyers in smart shoes that the opposition employed because 600+/hour/person is peanuts to them.

So that's where ADR comes in. Its more informal, its cheaper to do and the costs side if you loose are kept under control.

Because ADR is an informal environment, this can also work in your favour. The timetable and parameters are flexible and the final agreement reached can easily be better than whatever a judge might have handed down after listening to both side's lawyers bicker.

Of course, in most jurisdictions nothing stops you from going to court first if you like. But most modern-thinking judges tend to take a dim view if you turn up in front of them without having given some sort of ADR a go first.

Is it perfect, of course not. But neither are the courts. Your outcome in court is effectively dependent on both side's lawyers and what judge you get, so you having a better outcome in court is not necessarily guaranteed !

wat1000010 days ago
Arbitration is fine. There's no reason people shouldn't be allowed to freely engage the services of an arbitrator.

What people take issue with is forced arbitration. The problem isn't really about the arbitration at all, the problem is the part where you lose access to the courts. That should not be allowed.

malfist10 days ago
We all know the talking points from big corporations about why they force everyone into arbitration out of the goodness of their hearts. We don't need it regurgitated as if it's the truth.
FireBeyond10 days ago
> Of course, in most jurisdictions nothing stops you from going to court first if you like. But most modern-thinking judges tend to take a dim view if you turn up in front of them without having given ADR a go first.

“Nothing is stopping you” - most TOSes mandate arbitration, and unless you have something particularly egregious and a sympathetic judge the first thing on the docket is going to be a Motion to Dismiss.

And agreed. For better or worse. My minor stepdaughter was involved in a car accident. No liability was found, and the other party tried to sue her in Small Claims court which, in my state, you can’t sue a minor in (as no attorneys are permitted, so you’d have a minor representing themselves). The judge noted this, and told the other party “if you want to sue you will need to sue her parents or guardians”… and then tried to push us into binding arbitration anyway.

Which of course got my insurance company upset and involving attorneys on procedural/constitutional law, about challenging the judges authority to push us into that given there was no jurisdiction to hear the case in the first place so there was none to enforce us into arbitration (which in itself was an entirely separate farce, including where the “neutral” arbitrator berated me and said “I don’t understand why, as a person, if you know your insurance is going to be the one paying, you don’t just agree to give them all they’re asking for.”).

hobom10 days ago
> Of course, in most jurisdictions nothing stops you from going to court first if you like. But most modern-thinking judges tend to take a dim view if you turn up in front of them without having given some sort of ADR a go first.

But Uber's terms explicitly force consumers to waive their right to go to court if they want to access Uber's service.

jacquesm10 days ago
All these companies are universally sleazy and refuse to take responsibility, no matter what. It's pretty much par for the course: deny you are responsible, try to control the court case in such a way that you inflict even more suffering on the victims and their families and ultimately, even if you're found to be in the wrong do everything to stall payment until each and every legal avenue to do so is exhausted.
cmiles810 days ago
So Uber took this into forced arbitration to avoid the courts and then the arbitration blew up in their face. Sorry, but there’s some strong schadenfreude there.
throwaway858259 days ago
They'll select a more favorable arbitrator next time.
oceansky10 days ago
Good outcome, but forced arbitration should still be illegal.
jedberg10 days ago
Arbitration isn't the issue. The issue is when one of the parties has vastly more legal resources than the other, and gets to pick the arbiter.

Arbitration is fine for two equal parties when a third party neutral arbiter is chosen. I've been through that kind of arbitration and it was great.

But when the huge company gets to pick the arbiter (or even just threaten the arbiter with taking away all their other cases), that is when you have problems.

throwaway858259 days ago
Secret justice is not justice.
Glyptodon10 days ago
So should guilty pleas, nondisclosure agreements, and trials where juries can't decide on degree rather than prosecutors.
mchusma10 days ago
If you have been through both processes, you would more likely say the traditional civil process should be illegal.
hilariously10 days ago
No, you would say it needs to be reformed and funded, we have an extremely legalistic society that allows endless delaying and does not fund its core services very well.
TZubiri10 days ago
What's the line? If 2 brothers sign a contract, can't they decide their father will be the judge if disputes arise?

If there's a sports match, shouldn't the sports arbiter be able to decide whether some team scored a goal or not?

These are all valid civil contracts. It only affects the civil claims, never criminal, and the venue for disputing the arbitration clause (if you believe arbitration wasn't legal to begin with) are the public courts anyways, who will delegate or not to the private court.

Almost all countries recognize it and it has a quite defensible theory.

throwaway17373810 days ago
It sure is contextual. And nobody would disagree with your examples. The difference here seems to be more of a power imbalance than any objection to terms. In particular, terms of service are often very dense documents. Many people are only presented these documents at the moment they sign up for a service. And people are not usually careful in these situations. I bet most of the Uber signups were outside of bars or venues where someone really needed to get home. So there’s some duress there. So it’s probably not that cut and dried. It’s more analogous to presenting a contract to harvest your wheat field the day before a big rain. If you’re the only guy with a combine for miles then that puts you in a position of relative power. And historically the US hasn’t permitted people to exploit their positions to the maximum extent, usually when it would be immoral by the standards of society. I think this exists in a gray area. It’s not that easy.
Glyptodon10 days ago
I think my gripe is less that it exists and more so that it's not a negotiated agreement. I think it should only be allowed if the contract was negotiated between two parties with full authority to offer any terms in the negotiation. If it's a standardized, take it or leave it, contract where one party has no opportunity to offer alternative terms that get proper and full consideration by the other party, it shouldn't be allowed. In most of the examples you give, they are contracts that have been clearly negotiated between parties, not click-wrapped take it or leave it, my way or the highway, terms.
morder10 days ago
i think the keyword is "forced". there's very little now that the consumer can do because it seems everything requires arbitration now and people still have to operate in society.
CPLX10 days ago
> What's the line?

The line that minimum should be against using this as a tool against consumers. To the extent it should exist at all, which is arguable, it must be between parties that are either equal in standing or have genuine commercial disputes between duly organized business entities.

throwaway858259 days ago
I think such terms should require signatures and initials. Holding people to terms they are unaware of is not fair.

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