Uber ordered to pay $8.5 million in trial over driver intercourse assault claims

The case, introduced by plaintiff Jaylynn Dean, is the primary trial of greater than 3,000 related lawsuits towards Uber which were consolidated in US federal court docket

A US jury ordered Uber on Thursday, February 5, 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 when she was 19, a verdict that might affect 1000’s of comparable instances towards the ride-hailing firm.

The case, introduced by plaintiff Jaylynn Dean, was the primary trial — often called a bellwether — of greater than 3,000 related lawsuits towards Uber which were consolidated in US federal court docket. Bellwether trials are used to check authorized theories and assist gauge the worth of claims for attainable settlements.

The jury in federal court docket in Phoenix, Arizona, discovered that the driving force was an agent of Uber, holding the corporate liable 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.

Uber’s shares dipped 1.5% in after-hours buying and selling. Shares of rival Lyft, which is going through lawsuits making related claims, have been down 1.8%.

In a press release, an Uber spokesperson stated the corporate would attraction and famous the jury rejected Dean’s different claims, that the corporate was negligent or that its security techniques have been faulty. “This verdict affirms that Uber acted responsibly and has invested meaningfully in rider security,” the spokesperson stated.

Sarah London, an legal professional for Dean, stated the decision “validates the 1000’s of survivors who’ve come ahead at nice private threat to demand accountability towards Uber for its concentrate on revenue over passenger security.”

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 did not 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 legal professional for Dean, stated throughout the trial’s closing arguments that Uber had marketed itself as a protected choice for girls touring at evening, significantly if that they had been ingesting.

“Girls realize it’s a harmful world. We all know in regards to the threat of sexual assault,” Walsh stated. “They made us imagine that this was a spot that was protected from that.”

Uber says it’s not liable 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 progress over passenger safety, has argued it shouldn’t be held responsible for felony conduct by drivers who use its platform, saying that its background checks and disclosures about assaults are adequate.

The corporate maintains that its drivers are unbiased contractors somewhat than staff, and that no matter their classification it can’t be liable for actions that fall exterior the scope of what might moderately be thought-about their duties.

“He had no felony historical past. None,” Kim Bueno, an legal professional for Uber, stated of the driving force throughout closing arguments, noting that he had 10,000 journeys on the app and a virtually excellent score from riders. “Was this foreseeable to Uber? And the reply to that must be no.”

Dean’s lawsuit stated she was intoxicated when she employed an Uber driver to take her from her boyfriend’s residence to her resort. The motive force requested her harassing questions on the trip earlier than stopping the automotive and raping her, Dean alleged within the lawsuit.

US District Choose Charles Breyer, who usually sits on the bench in San Francisco, oversaw Dean’s case in Phoenix. Breyer is managing all the related federal instances towards 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 to date, 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 think about inflicting the lady’s hurt.

Morningstar analyst Mark Giarelli stated whereas it was laborious to extrapolate the bigger monetary implications, Uber’s background checks have been possible to enhance following the decision.

“This underscores the significance of strong background checks on comfort purposes comparable to Uber, Lyft and DoorDash the place there may be interplay between clients and the provision aspect — drivers and supply brokers,” Giarelli stated. – Rappler.com