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Uber Ordered to Pay $40M After Driver Abandons Intoxicated Passenger
Confirmed
In Short: Uber has been ordered to pay $40 million to the family of a woman who was fatally struck on a California highway after being abandoned by the company's driver.
Uber has been ordered to pay $40 million to the family of Emily Normandin-Parker, a 23-year-old woman who was fatally struck on a California highway after being abandoned by the company's driver, Vu Tran, according to a ruling by Judge Richard Stone.
Normandin-Parker had booked an Uber with a friend on August 12, 2023, but her friend became sick and vomited during the ride.
The driver, Tran, allegedly pulled over to the side of the highway and ordered Normandin-Parker out of the car, leaving her on the freeway where she was hit and killed by another vehicle.
Her parents said Normandin-Parker did everything Uber tells riders to do, making the responsible choice not to drive and trusting Uber to get her home safely.
Uber had argued that Tran was an independent contractor and that the company was not responsible for his actions.
However, Judge Stone ruled that Uber could be held liable for the actions of its drivers, rejecting the company's arguments that Proposition 22, which classifies drivers as independent contractors, shields it from liability.
The judge noted that Uber could be subject to both public utility rules and a non-transferable legal duty for safety as a common carrier.
Lawyers for Normandin-Parker’s parents said evidence presented during the arbitration showed Uber had received previous complaints about Tran’s driving.
Uber spokesperson Gabriela Condarco-Quesada told CalMatters that the company disagrees with the decision.
The arbitrator's decision highlights the ongoing debate over the responsibilities of ride-hailing companies for the actions of their drivers.
What this adds
The ruling underscores the potential liability ride-hailing companies face for the actions of their drivers, despite efforts to classify them as independent contractors.
The case adds to the scrutiny of Uber's safety protocols and the broader debate over gig economy worker classification.
What's confirmed
- Uber had argued that the driver was an independent contractor, and the company was not responsible for his actions.
- Uber said it believed the arbitrator was wrong in holding the company legally responsible for the event.
What's still developing
- "We have continued to strengthen our approach to safety over the years, through new technology, policies and safeguards informed by safety experts, including additional guidance to drivers about avoiding drop-offs in unsafe locations," the company said in a statement.
- The law firm representing the family said Uber had initially proposed a settlement that would give the parents $10m and require them not to speak about the incident, which they declined.
- The ride-hailing app has launched 15 self-driving taxis, but they will have safety drivers inside.
- “Prop. 22 does not immunize Uber from vicarious liability” for the wrongdoing of its drivers, Richard Stone, a retired judge who served as the arbitrator, wrote in his July arbitration award.
- In his earlier ruling in March, Stone wrote that when California voters passed Prop. 22 in 2020, they could not have intended to do away with Uber’s liability for its drivers’ actions.
- He noted that the language in the ballot proposition urging voters to approve it referred to classifying drivers as independent contractors, meaning they would not get standard benefits and protections like employees would.
- Normandin-Parker’s parents and Moore sued Tran and Uber in Orange County Superior Court in September 2023, and the parties agreed to arbitration.
- Uber reported revenue of more than $14 billion and net income of more than $2 billion in its second quarter that ended in June.
- Parker pushed back on what he called a spin campaign by Uber, noting that the company tried to keep them from talking about the arbitrator’s award.
- The company spokesperson said this week that Tran, who can no longer drive for Uber, had completed thousands of trips without any unsafe drop-offs, freeway stops or rider injury.
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- “Hopefully, it (Uber) will learn from this tragic incident… and change the pertinent policies and procedures accordingly,” the judge wrote.