Catastrophically Injured Couple Forced to Arbitrate with Uber After Ordering a Pizza: Understanding Your Rights in an Uber Car Accident

The Case Against Uber: A Legal Battle Over Arbitration

In a recent legal battle, a New Jersey couple, John and Georgia McGinty, found themselves up against Uber after a life-altering Uber car accident. The McGintys filed a lawsuit against the ride-hailing company in February 2023, nearly a year after the crash, which resulted in serious physical, psychological, and financial damages. However, their legal efforts were thwarted by the company’s terms and conditions, which required arbitration for disputes—a clause that the couple’s daughter allegedly agreed to when ordering Uber Eats on her mother’s cell phone.

What Happened? The Uber Car Accident That Led to the Lawsuit

The incident that led to the McGintys’ lawsuit occurred in March 2022 when they were riding in an Uber. The Uber driver ran a red light and collided with another car, causing extensive injuries to both Mr. and Mrs. McGinty. John suffered a fractured sternum and severe fractures to his arm and wrist, while Georgia sustained numerous injuries, including spinal fractures, a hernia, and trauma to her abdominal wall. Despite significant medical expenses and Georgia being unable to return to her job for over a year, Uber’s legal team filed a motion to compel arbitration, which would force the McGintys to resolve their dispute outside the court system.

Uber’s Defense: How Arbitration Blocked Their Case

Uber’s defense centered around the claim that Georgia McGinty had agreed to the company’s terms of service, including the arbitration clause, on multiple occasions, particularly when she signed up for Uber’s services in 2015 and later accepted updated terms in 2021 and 2022. Uber argued that the agreement extended to arbitration for any claims, including those related to auto accidents and personal injuries. The couple, however, contested the notion that Georgia was responsible for the most recent acceptance of terms. They argued that it was their daughter, a minor, who had used Georgia’s phone to place an Uber Eats order in early 2022 and, in doing so, unknowingly or unintentionally accepted the updated terms and the arbitration clause.

Why Did the Appeals Court Rule in Uber’s Favor?

Initially, a lower court ruled in favor of the McGintys, denying Uber’s motion to compel arbitration, but the company appealed. The New Jersey appeals court later reversed the lower court’s decision, ruling that the arbitration agreement was valid and enforceable. The court found that whether Georgia agreed to the terms herself or through her daughter, the agreement to arbitrate was binding. The panel concluded that there was no ambiguity in the terms Georgia had accepted, and the arbitration clause applied.

The Bigger Issue: Are Arbitration Clauses Taking Away Your Rights?

The ruling has sparked concerns, particularly regarding a troubling trend in which companies like Uber and Lyft are pushing the boundaries of arbitration agreements. Uber and Lyft have strategically designed their digital platforms and access to their wildly popular Apps, using tactics to get quick and simple clicks from users, who unwittingly enter into these binding agreements. The implications for the millions of Americans who are unknowingly waiving their right to have disputes resolved in court is extremely troublesome, and raises serious questions about the ease at which riders and drivers are waiving their Constitutional Right to a jury trial. There was a similar case against Disney, which garnered significant media attention, where the media conglomerate attempted to force arbitration on a wrongful death lawsuit after a man’s wife died from an allergic reaction at Disney World.

Could This Happen to You? How Arbitration Affects Rideshare Passengers

The increasing use of arbitration clauses in various industries creates a threshold issue for consumers in New Jersey and around the country, specifically, what service, product, or provider will adopt the Uber and Lyft model. Will it be your emergency room doctor, making sure you agree to waive your right to have a jury trial as you bleed out? Will it be your university, making sure you have to arbitrate any claim against them, before you can get a merit-based scholarship? Will it be the local police, who, during an emergency response first send you a text message which you have to click to agree to their terms of emergency response services, before they send an officer to confront a home intruder? These examples may seem like extreme scenarios, but “where does the buck stop”? 

What Can You Do If You’re Injured in an Uber Car Accident?

The alarming trend of arbitration clauses being enforced in consumer contracts raises important questions about due process and fairness. Critics worry that these clauses are being used to sidestep the legal system, potentially depriving individuals of their right to have their day in court. For the McGintys, the legal battle may not be over yet, as they are considering appealing the decision to the New Jersey Supreme Court, aiming to push back against what they perceive as an overreach by companies like Uber.

Contact an Experienced Uber Car Accident Lawyer From Drazin & Warshaw in New Jersey Today

This case serves as a reminder of the challenges individuals face when navigating complex legal agreements, especially when companies like Uber utilize arbitration clauses to shield themselves from lawsuits. The growing trend of enforcing these clauses raises important questions about consumers’ rights and the extent to which companies can limit legal recourse in the face of serious personal injuries. The “David versus Goliath” battle is a tale as old as time, and having the right lawyer alongside you can make all the difference.

If you were injured in a rideshare accident, contact Drazin & Warshaw today at 732-333-8141 to schedule your free consultation. We represent clients in Red Bank, Howell, and East Brunswick. 

Disclaimer: This blog is intended for informational purposes only and does not establish an attorney-client relationship. It should not be considered as legal advice. For personalized legal assistance, please consult our team directly.