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NJ Court Allows Rideshare Services to Enforce Pop-Up Arbitration Agreement

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For many New Jersey residents, rideshare services such as Uber and Lyft have become a part of everyday life. Whether using these vehicles to get to work, ride to the airport or avoid driving after having consumed a few drinks, most people go to these apps without thinking about their legal rights in the event of an accident. In a recent court case, three passengers who were hurt while on an Uber trip learned that a quick click they made long before the crash had prevented them from taking the company to court.

Jeanette Williams, Maurice Williams and Michael Floyd were riding in an Uber vehicle driven by Eric Dortbucuk on October 3, 2021 when it collided with another car. Along with both drivers and the owner of the car, the victims filed suit against Uber itself. The rideshare giant moved to dismiss the lawsuit based on the fact that each individual plaintiff had agreed to the company’s terms of use when joining the app and assented to a subsequent update. Without this agreement, a user cannot establish an Uber account, and accordingly cannot hail rides through the service.

The key agreement language cited by Uber reads as follows: “[b]y agreeing to the Terms, you agree that you are required to resolve any claim that you may have against Uber on an individual basis in arbitration.” As confirmation, that section of the terms and conditions also declares that both the user and Uber agree to waive their right to a jury trial in the event of a dispute between the two parties.

In its decision, the Appellate Division of the Superior Court sided with the rideshare company. This ruling affirmed the motion judge’s decision that the language in question constitutes an enforceable clickwrap agreement, requiring users to physically scroll through online text and click on a separate “I agree” button to assent to the terms and conditions of the host website.

Though a direct lawsuit against a company such as Uber or Lyft might not be possible, there are several ways for a passenger injured in a rideshare accident to pursue appropriate compensation. Drivers for these services are independent contractors and can be sued individually. Uber and Lyft provide $1 million of insurance coverage to their drivers from the time they start heading to pick up a fare through the end of their ride. The case at hand also includes the other driver as a defendant. In any car accident claim, it is important to review the situation thoroughly to identify all liable parties. Moreover, if there is some specific negligence on the rideshare company’s part, an award might be granted in arbitration. 

Seigel Law in Ridgewood represents clients throughout North Jersey who have been hurt in all types of auto accidents, including those involving rideshare vehicles. For a free consultation with an accomplished New Jersey injury lawyer, please call 201-444-4000 or contact us online.

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