Rideshare Liability

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.}