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Defense Digest

On the Pulse…Our Rideshare Liability Practice Group

Defense Digest, Vol. 29, No. 1, March 2023

March 1, 2023

by Thomas F. Brown and Patrick M. DeLong

Meeting the Needs of the Rideshare Revolution

In a relatively short timespan, rideshare platforms—like Uber and Lyft—and carshare platforms—like Turo—have transformed the global transportation industry. With the push of a few buttons, users can instantly hail a ride or rent a vehicle virtually anywhere in the world. Unquestionably, the advent of these technology service companies has made travel more convenient and efficient. But it has also spawned a multitude of new legal issues and claims. Legislators and judges have been striving to keep up with the technology, but every legislative or judicial action can create new and complex legal questions. Marshall Dennehey responded to the needs of the industry by forming its Rideshare Liability Practice Group—a dedicated team of experienced defense attorneys who have developed specialized knowledge of legal issues facing this revolutionary industry.

Originally launched in 2021, the Rideshare Liability Practice Group is on the cutting edge of defending a wide variety of rideshare claims and peer-to-peer carshare claims. The practice group is comprised of numerous attorneys across the firm’s 19 offices—located in seven different states, including Pennsylvania, Florida, New Jersey, Ohio, New York, Connecticut, and Delaware—who have handled hundreds of claims in the field. The practice group is co-chaired by Thomas F. Brown (Orlando) and Patrick M. Delong (Fort Lauderdale), who cumulatively have over 50 years of insurance defense experience.

The attorneys in this practice group have worked with multiple rideshare and carshare platforms. They appreciate the need for understanding the vocabulary of the industry as well as issues of confidentiality and brand protection. Using the wrong terminology could create exposure or liability where it would not otherwise exist. During the course of discovery, a company’s intellectual property and proprietary data might be requested. The attorneys in this group frequently oppose discovery requests that seek proprietary and trade-secret information, and they utilize confidentiality agreements and protective orders to shield confidential information from improper use and widespread disclosure. Appropriate provisions in settlement agreements are also used to protect sensitive information.

The Rideshare Liability Practice Group also has extensive experience defending the insurers and users of these platforms, including drivers, vehicle owners, and vehicle renters. They have successfully defended claims involving catastrophic injuries, wrongful death, multiple-vehicle accidents, and multiple claimants. They have staved off aggressive and creative attempts by the plaintiff’s bar to expand liability through causes of action, including:

  • Negligence
  • Vicarious liability
  • Negligent hiring or selection
  • Negligent retention and supervision
  • Product liability
  • Negligent design of the ride-hailing application
  • Negligent maintenance of a shared car
  • Negligent entrustment
  • Bad faith
  • Uninsured and underinsured motorist

Defending these cases requires the knowledge and an understanding of applicable federal and state laws and regulations. The laws and regulations of a particular state might govern the level of insurance coverage required during various aspects of the rideshare process. An independent rideshare driver might need his or her own insurance while the rideshare app is off. The rideshare platform might be required to provide a coverage when an independent rideshare driver is using the app, but a different amount of coverage might be required depending on whether the driver has accepted a ride or if the driver is actively transporting a rider.

Formulating appropriate defenses to these claims also requires an understanding of the applicable law. For example, Florida trial courts have issued conflicting opinions regarding whether a transportation network application is a product subject to product liability laws or a service outside the scope of such laws. Since the Florida appellate courts have not yet weighed in with a controlling opinion on the issue, a rideshare defense practitioner must possess a cutting-edge awareness of developing discovery trends and legal arguments advanced by the plaintiff’s bar with respect to this issue and must prepare his or her client to successfully defend against them during the discovery and dispositive motion phases of litigation.

Another example of evolving legal trends may be found in the carshare arena, where both state and federal law could insulate the vehicle owner from liability. The Graves Amendment is a federal law that bars vicarious liability claims where:

  • The owner (or an affiliate of the owner) is engaged in the trade or business of renting or leasing motor vehicles; and
  • There is no negligence or criminal wrongdoing on the part of the owner (or an affiliate of the owner).

Several states have now enacted peer-to-peer carsharing statutes that expressly extend the Graves Amendment to carsharing situations.

There are numerous complexities to defending a rideshare or carshare claim, and the attorneys in Marshall Dennehey’s Rideshare Liability Practice Group can be retained to assist at different stages throughout the life of a claim. Before a lawsuit is filed, our rideshare defense attorneys are often asked to assist with accident investigations, preservation of evidence, expert retention, legal research, global settlement conferences, and responding to time-limit demands. Marshall Dennehey’s lawyers have the experience and skill to take cases to trial and are also supported by an exceptional appellate group. In the Marshall Dennehey Rideshare Liability Practice Group, the aim is to always provide outstanding, efficient, and cost-conscious legal services to our clients.

*Patrick DeLong is a shareholder in our Fort Lauderdale, Florida, office. He can be reached at 954.832.3953 or pmdelong@mdwcg.com. Tom Brown is a shareholder in our Orlando, Florida, office. He can be reached at 407.420.4392 or tfbrown@mdwcg.com.

 

Defense Digest, Vol. 29, No. 1, March 2023, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2023 Marshall Dennehey. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

blue facade of a hospital sign against blue sky

Result

Defense Verdict in Complex Medical Malpractice Trial

Thought Leadership

PA Middle District Dismisses Claims Against School District and its Superintendent, Principal, Special Education Director, and Classroom Teacher

A five-year-old special education student was enrolled in the Wyoming Valley West School District and attended the State Street Elementary School during the 2024-2025 school year. The student refused to clean up classroom toys at dismissal. When his teacher allegedly grabbed him by the wrist to walk him back to his seat, the student dropped to the floor and began crying. The teacher then allegedly grabbed the student by the ankle and dragged him across the floor. Following an investigation, criminal charges were not advanced by the county DA, and the school permitted the teacher to return to the classroom. The student’s parents sued, lodging thirteen legal counts under both state and federal law, which sought monetary damages from the teacher, the school district, the superintendent, the principal, and the director of special education. The plaintiff’s 42 USC 1983 claims were dismissed as to the school district for failure to allege a policy or custom violation, and the failure to alleged deliberate indifference in the failure-to-train context. As to the superintendent, building principal, and special education director, the Section 1983 claims were also dismissed for failure to allege personal involvement on the part of the individuals. Regarding an equal protection claim asserted against all defendants, the motion to dismiss was also granted for a failure to advance a plausible equal protection claim, holding that “plaintiffs' single-act allegations do not include a factual basis to even infer that the act was motivated by discriminatory animus rather than some other non-discriminatory impulse.” The court further dismissed the plaintiff’s negligence-based claims including negligence against the teacher and district administrators, NIED, and vicarious liability under the Political Subdivision Tort Claims Act (PSTCA). The federal claims under the IDEA, Section 504, and the ADA were also dismissed in various respects. The IDEA claim was dismissed against all defendants with prejudice for failure to exhaust administrative remedies. The Section 504 claims against the individual defendants were also dismissed with prejudice, as districts, not individuals, are the recipients of federal funds under Section 504. However, the Section 504 and ADA claims were dismissed without prejudice as to defendant Wyoming Valley West, and the plaintiff was permitted leave to amend.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict. 

Thought Leadership

Marijuana Legalization and Workplace Risk: What New Jersey Employers Need to Know

While the legalization of recreational marijuana usage poses a risk of increased work-related accidents for younger workers, employers can work to curb this increase by investing in education, effective drug policies, and employee assistance programs.

Event

29th Annual FDLA Florida Liability Claims Conference

Jim and Erica will team up to present, "Supporting the Next Generation: Connecting with Associates." This panel-style presentation will explore communication best practices from the perspective of a senior shareholder and newer associate. The discussion will focus on the communication styles of different generations and effective strategies to avoid communication breakdowns. Topics to be discussed include the hiring process, perceptions of defense work among newer lawyers, work-life balance issues after hiring, and mentoring.

Thought Leadership

U.S. Supreme Court Decides Key Issue Regarding Interstate Freight Broker Liability

Freight brokers are intermediaries.  They connect shippers of goods with trucking companies that transport those goods.  Freight brokers match a load of freight with a trucking company and oversee the logistics of the transportation. For a number of years there has been a division among the Federal Circuits regarding the potential liability of freight brokers when the trucking companies that they retain for interstate loads are involved in accidents.  At the center of this division was the Federal Aviation Administration Authorization Act of 1994 (FAAAA).  Some Federal Circuit Courts have held that state law negligent hiring claims against freight brokers were preempted by the FAAAA .  Other Federal Circuits Courts have held that even if preemption applied, the “safety exception” in the FAAAA saved state law negligent hiring claims from federal preemption.  On May 14, 2026, the U.S. Supreme Court addressed the conflict in Montgomery v. Caribe Transport II, LLC, et al, No24-1238. In that case freight broker C.H. Robinson selected Caribe Transport to haul an interstate load. The commercial truck driver employed by Caribe Transport allegedly caused an accident and the plaintiff, Montgomery, was seriously injured. Montgomery brought an action against the driver, Caribe Transport and C.H. Robinson. The allegation against C.H. Robinson was that it negligently retained Caribe Transport when it knew, or should have known, that it was an unsafe company. The Seventh Circuit Court of Appeals held that Montgomery’s claims against C.H. Robinson were preempted by the FAAAA. The plaintiff appealed to the U.S. Supreme Court.  The U.S. Supreme Court’s decision focused primarily on the safety exception in the FAAAA.  That provision provides that the FAAAA preemption “…shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” C.H. Robinson argued, as freight brokers historically have, that their function was not “with respect to motor vehicles” because they do not own trucks or employ drivers. They are merely intermediaries, connecting entities who need freight moved with entities who can do that job. Therefore, C.H. Robinson argued that preemption applied, not the safety exception. The U.S. Supreme Court did not accept that argument. The Court focused on the meaning of the phrase “with respect to” in the safety exception. The Court held that it means “referring to”, “concerning” or “regarding”. Therefore, writing for a unanimous Court, Justice Barrett concluded that “[r]equiring C.H. Robinson to exercise ordinary care in selecting a carrier therefore “concerns” motor vehicles—most obviously, the trucks that will transport the goods. So, Montgomery’s negligent-hiring claim falls within the FAAAA’s safety exception, which saves it from preemption.” Justice Kavanaugh, in his concurring opinion, noted the effect this ruling may have on freight brokers and their insurers throughout the country: Importantly, the Court's decision today should not be read to mean that brokers will routinely be subject to state tort liability in the wake of truck accidents. As even plaintiff's counsel stressed, brokers should be able to successfully defend against state tort suits if the brokers have acted reasonably and arranged transportation with reputable trucking companies. Tr. of Oral Arg. 27-29. In plaintiff's counsel's words, the brokers "just have to hire carriers that actually have a reasonable policy," and "the broker is not going to have a problem if it's asking the hard questions of the carrier." Id., at 42, 45. In addition, the proximate-cause requirement in typical state tort law should help protect brokers from excessive liability. Id., at 25. That said, the brokers rightly caution against naivete. In the real world, as the brokers forcefully respond, state tort law can be unpredictable, and the costs to brokers of litigation and insurance may be significant even when brokers prevail in lawsuits. Moreover, the costs of litigation and insurance, as well as the costs of brokers' conducting more substantial inquiries into trucking companies, will cascade through the economy and be paid in part by American consumers in the form of higher prices. The concerns expressed by the brokers are legitimate and weighty. The key point here is that freight brokers can no longer claim they are protected from negligent retention claims by the FAAAA (in cases involving interstate transportation). The challenge will be to determine what is considered ”reasonable efforts” used by brokers when retaining transportation companies. 

News

John J. Hare Featured in Pennsylvania & Delaware Super Lawyers Magazine

News

Christina Gonzales To Speak at the Women of Color Roundtable at DRI’s Diversity and Inclusion Seminar

Result

Summary Judgment Secured, Preserving $750,000 in Coverage for Insured in Major Trucking Liability Dispute

Ray Freudiger and Michael A. Roberts (both of Cincinnati) successfully obtained summary judgment on behalf of their client in a coverage dispute arising from a May 19, 2022, motor vehicle accident. A permissive driver operated a box truck for an interstate trucking company and caused severe injuries to two tort victims. Prior to the accident, the insured had procured a commercial auto policy for the trucking company with stated limits of $1,000,000. Following the accident, the insurer initiated a declaratory judgment action asserting that only reduced bodily injury limits of $25,000/$50,000 applied and later counterclaimed, alleging it would not have insured the driver had he been properly submitted for approval under the policy. After extensive discovery, briefing, and oral argument, the court rejected the insurer’s attempt to shift responsibility for the $750,000 in coverage it was legally required to provide for permissive drivers under Ohio law, granting summary judgment in favor of the insured and preserving $750,000 in liability exposure.

graphic with Maria Granaudo photo text announces she has joined the firm as a shareholder in the Health Care Dept.

News

Maria R. Granaudo Joins Marshall Dennehey’s Wilmington Office As a Shareholder in the Health Care Department