Uber ordered to pay woman $8.5M in first trial – Business News
A federal jury in Phoenix ordered Uber on Thursday to pay $8.5 million after discovering it liable in a lawsuit introduced by a woman who mentioned she was sexually assaulted by a driver, a verdict that would affect hundreds of related circumstances towards the ride-hailing company.
The case, introduced by plaintiff Jaylynn Dean, was the first trial – often called a “bellwether” – of more than 3,000 related lawsuits towards Uber which have been consolidated in federal court docket. Bellwether trials are used to take a look at legal theories and help gauge the worth of claims for potential settlements.
The jury discovered that the driving force was an agent of Uber, so the company was liable for his actions. They awarded Dean $8.5 million in compensatory damages however declined to award punitive damages. Attorneys for Dean had sought more than $140 million in damages.
The case, introduced by plaintiff Jaylynn Dean, was the first trial – often called a “bellwether” – of more than 3,000 related lawsuits towards Uber which have been consolidated in federal court docket. REUTERS
In a assertion, an Uber spokesperson famous that the jury rejected Dean’s different claims, that the company was negligent or that its security systems had been faulty, including that the company plans to appeal. “This verdict affirms that Uber acted responsibly and has invested meaningfully in rider safety,” the spokesperson mentioned.
Sarah London, an legal professional for Dean, mentioned the decision “validates the thousands of survivors who have come forward at great personal risk to demand accountability against Uber for its focus on profit over passenger safety.”
Uber shares fell 0.5% in prolonged trading following announcement of the decision.
Dean, an Oklahoma resident, sued Uber in 2023, one month after her alleged assault in Arizona. She mentioned Uber was conscious of a wave of sexual assaults dedicated by its drivers, however had failed to take primary actions to improve the security of its riders. Such assertions have long dogged the company, drawing headlines and congressional scrutiny.
Alexandra Walsh, an legal professional for Dean, mentioned during the trial’s closing arguments that Uber had marketed itself as a protected option for ladies touring at night time, significantly if that they had been ingesting.
An Uber spokesperson famous that the jury rejected Dean’s different claims, that the company was negligent or that its security systems had been faulty, including that the company plans to appeal. CEO Dara Khosrowshahi, above. Getty Images
“Women know it’s a dangerous world. We know about the risk of sexual assault,” Walsh mentioned. “They made us believe that this was a place that was safe from that.”
Uber says 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 mentioned prioritized growth over passenger safety, has argued that it shouldn’t be held accountable for felony conduct by drivers who use its platform, saying that its background checks and disclosures about assaults are enough.
Uber has argued that it shouldn’t be held accountable for felony conduct by drivers who use its platform, saying that its background checks and disclosures about assaults are enough. Diego – stock.adobe.com
The company maintains that its drivers are impartial contractors reasonably than staff, and that regardless of their classification it can’t be liable for actions that fall outdoors the scope of what might moderately be thought of their duties.
“He had no criminal history. None,” Kim Bueno, an legal professional for Uber, mentioned of the driving force during closing arguments, noting that he had 10,000 journeys on the app and a practically good score from riders. “Was this foreseeable to Uber? And the answer to that has to be no.”
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Dean’s lawsuit mentioned she was intoxicated when she employed an Uber driver to take her from her boyfriend’s home to her lodge.
The driver requested her harassing questions on the trip earlier than stopping the car and raping her, Dean alleged in the lawsuit.
Uber can be dealing with more than 500 circumstances in California state court docket. Rival Lyft is dealing with related lawsuits in each state and federal court docket, Tada Images – stock.adobe.com
US District Judge Charles Breyer, who usually sits on the bench in San Francisco, oversaw Dean’s case in Phoenix. Breyer is managing all of the same federal circumstances towards Uber, which have been centralized in his court docket in San Francisco.
The company can be dealing with more than 500 circumstances in California state court docket. In the one one of these circumstances to go to trial to date, a jury in September sided with Uber. The jury discovered that whereas the company had been negligent with its security measures, that negligence was not a substantial issue in inflicting the woman’s hurt.
Uber rival Lyft is dealing with related lawsuits in each state and federal court docket, though there may be no coordinated federal litigation for these claims. Shares of Lyft had been down 1% after the decision.
