.

Defense Digest

Court Affirms Strong Liability Protections for Rideshare Companies Under Florida Law

Defense Digest, Vol. 32, No. 1, March 2026

March 1, 2026

by Sophia E. D. Philor

Key Points:

  • Florida law treats rideshare drivers as independent contractors when statutory conditions are met.
  • The law in effect on the date of the accident controls liability analysis. 
  • Isolated complaints and traffic citations are generally insufficient to prove negligent hiring. 

A Florida appellate court recently affirmed summary judgment in favor of Lyft, highlighting the liability protections available to rideshare companies under Florida’s Transportation Network Company statute. In Abner v. Lyft Florida, Inc., 422 So.3d 1226 (Fla. 3d DCA 2025), the District Court of Appeal of Florida, Third District, held that Lyft could not be held liable for injuries caused by one of its drivers, rejecting claims for both vicarious liability and negligent hiring and retention.

The case arose from an accident on July 5, 2017, where a Lyft driver collided with a motorcyclist, causing serious injuries. At the time, the driver was providing a prearranged ride through Lyft’s digital platform. The injured motorcyclist’s guardian sued both the driver and Lyft. While claims against the driver were settled, the claims against Lyft continued.

The plaintiff argued Lyft was responsible in two ways: the driver was acting as Lyft’s employee or agent at the time of the accident, and that it was negligent in hiring and retaining the driver. Lyft moved for summary judgment, relying on Florida’s Transportation Network Company statute, section 627.748, Florida Statutes (2017), which had taken effect just days before the crash.

The plaintiff argued the statute should not apply because the driver had been approved to drive for Lyft before it went into effect. The court rejected that argument, explaining that Florida law applies the statute in effect when the cause of action accrues. In negligence cases, that is the date of the accident. R.J. Reynolds Tobacco Co. v. Sheffield, 266 So. 3d 1230, 1233 (Fla. 5th DCA 2019). Since the accident occurred after the statute became effective, the statute governed the claims against Lyft.

Under section 627.748(9), a rideshare driver is considered an independent contractor, not an employee, if certain conditions are met. These conditions include allowing drivers to set their own hours, permitting work on competing rideshare platforms, not restricting other business or employment, and confirming independent contractor status in writing. Lyft presented evidence that these conditions were satisfied, including the driver agreement and testimony from its corporate representative.

The plaintiff argued that the driver did not qualify as an independent contractor because the agreement allegedly limited other work. The court disagreed, finding that the agreement only limited the driver’s activities while actively providing rides through the Lyft platform. Outside of those times, the driver remained free to pursue other employment or business activities. The agreement explicitly confirmed the driver’s discretion to work or not work. The court noted this is consistent with prior Florida cases recognizing rideshare drivers as independent contractors. McGillis v. Department of Economic Opportunity, 210 So. 3d 220, 225-226 (Fla. 3d DCA 2017).

Since the driver qualified as an independent contractor, Lyft could not be held vicariously liable for the driver’s alleged negligence. Florida law generally holds that companies are not responsible for the negligent acts of independent contractors when they do not control how the work is performed. Stander v. Dispoz-O-Prods., Inc., 973 So. 2d 603, 604 (Fla. 4th DCA 2008).

The plaintiff also claimed Lyft was directly liable for negligent hiring and retention, citing a speeding citation, a reckless driving citation, and two negative passenger complaints. The court found this evidence insufficient. Under the statute, disqualification is triggered by certain criminal convictions, and not merely by citations. The driver’s reckless driving incident was only a citation, and a single moving violation did not meet the statutory threshold for disqualification. The passenger complaints were similarly inadequate: one was a vague two-star review with no explanation, and the other involved a single passenger reporting unsafe driving. Given the hundreds of rides the driver had safely completed, the court considered this evidence isolated and minimal.

The limited evidence led the court declining to broadly define negligent hiring claims against transportation network companies. Instead, it resolved the case narrowly, emphasizing judicial restraint. The court explained that if evidence is insufficient to survive a directed verdict at trial, it cannot survive summary judgment. CG Tides LLC v. SHEDDF3 VNB, LLC, 388 So. 3d 1081, 1084 (Fla. 3d DCA 2024); In re Amendments to Florida Rule of Civil Procedure 1.510, 317 So. 3d 72, 75 (Fla. 2021).

For insurance professionals, Abner v. Lyft Florida, Inc. reinforces the protections Florida law provides to transportation network companies. It highlights the importance of applying the law in effect on the date of loss, confirming independent contractor status, and assessing the sufficiency of evidence for negligent hiring claims. It also demonstrates how Florida’s summary judgment standard can resolve weak claims early, reducing exposure and defense costs. The appellate court ultimately affirmed summary judgment in Lyft’s favor.

Sophia works in our Fort Lauderdale, FL office. She can be reached at (954) 233-3026 or SEPhilor@mdwcg.com.

Firm Highlights

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

Congress Passes Financial Exploitation Prevention Act

On June 25, 2026, the House passed the Financial Exploitation Prevention Act of 2025 (“the Act”) by a vote of 414 to 2. The Act allows financial advisors and firms to delay suspicious transactions regarding the accounts of clients who are 65 or older, if they believe financial exploitation has occurred or is about to take place. With the advancement of technology and AI, the House’s overwhelming bipartisan passage of the Financial Exploitation Prevention Act represents an important step in strengthening the financial industry’s ability to combat the growing threat of elder financial exploitation. The Act recognizes what advisors have long known that financial professionals are often the first to detect suspicious behavior but have historically lacked clear legal authority to intervene before irreversible financial harm occurs. From the industry’s perspective, the bill accomplishes several important objectives, including the following: (1) Provides a practical “pause button” by allowing financial professionals to temporarily delay certain transaction requests when there is a reasonable belief that a senior or vulnerable adult is being financially exploited; (2) Empowers financial professionals to act by providing greater certainty that firms can act in good faith to protect clients without unnecessary legal risk; and (3) Strengthens investor protection without sacrificing client rights by allowing temporary delays based on a reasonable suspicion of exploitation, which is intended only to allow additional review and not to deny clients access to their money indefinitely. In sum, the Financial Exploitation Prevention Act will equip financial professionals with practical, carefully tailored tools to stop suspected financial exploitation before client assets are lost. By allowing firms to temporarily delay suspicious transactions under defined circumstances, Congress is recognizing the critical role advisors play as the first line of defense against increasingly sophisticated fraud schemes. The Act strikes an appropriate balance between protecting vulnerable investors and preserving individual financial autonomy, while reinforcing collaboration among advisors, families, and law enforcement to combat financial exploitation. The bill now awaits Senate action.

Thought Leadership

Mitigating Long-Tail Liability: Delaware Court Reaffirms Five-Year Workers’ Compensation Deadline

Williamson v. Donald F. Deaven, Inc., No. N25A-07-004 FWW, 2026 LX 252526 (Del. Super. Ct. June 2, 2026) Claimant was involved in a compensable industrial work accident on May 12, 1995, for a low back injury.  Following this, he received compensation for temporary total disability benefits from July 1996 to September 1996 and for sustaining a permanent impairment in 1997 and 1998. For the next 23 years, the claimant continued treatment and paid his own medical bills without submitting them to the employer’s insurer. In November 2021, the claimant filed a petition seeking payment for medical expenses, including prospective surgery and a resulting period of total disability. The employer moved to dismiss the petition, arguing it was barred by Delaware’s five-year statute of limitations (19 Del. C. § 2361(b)). Pursuant to 18 Del. C. § 3914, insurers must provide prompt written notice of the applicable statute of limitations to invoke the five-year deadline. Due to the age of the case, neither party had a comprehensive file of the claim and the Board had archived its file of the matter. The carrier’s computer system retained only bare information indicating that payments occurred and agreements and receipts were filed with the Board in 1997. While the claimant argued that the employer could not prove it provided the mandatory statutory notice, the Hearing Officer recovered the archived file, which contained two “Receipts for Compensation Paid” signed by the claimant. The receipts explicitly contained the required five-year limitation language, which the claimant testified to signing at the hearing. The claimant also attempted to introduce evidence of payments he claimed the employer made, which would have extended the statute of limitations. As a preliminary matter, the hearing officer excluded the testimony about the payments because the claimant did not produce them to the employer. The Board found in favor of the employer and dismissed the claimant’s petition as time-barred. The claimant appealed the Board’s decision, arguing that he never received adequate notice of the statute of limitations and that the hearing officer’s evidentiary ruling was an abuse of discretion. The Court held that the archived, signed receipts constituted substantial evidence that the insurer fulfilled its statutory notice requirements. Therefore, the claimant’s petition was time-barred under the statute of limitations provisions of 19 Del. C. § 2361(b). Furthermore, the Court reinforced strict procedural compliance: it rejected the claimant’s attempts to introduce evidence of payment on appeal, ruling the argument was waived for failure to preserve it while the matter was still before the Board. This recent ruling by the Court underscores the importance and necessity of robust data preservation and precise compliance with notice requirements. For risk managers, employers, and insurers, the decision highlights how tight administrative execution protects against catastrophic long-tail liability.

Thought Leadership

New Jersey Expands Family Leave Protections Effective July 17, 2026

On January 17, 2026, Governor Murphy signed into law legislation expanding the New Jersey Family Leave Act (NJFLA). Beginning July 17, 2026, significant amendments to the NJFLA will expand job-protected family leave to smaller businesses and more employees across the state. The new law broadens coverage by lowering the threshold for private employers from 30 employees to 15 employees, meaning many smaller businesses will now be subject to the NJFLA. Employees of state and local government agencies will continue to be covered regardless of the size of the employer. The amendments also make it easier for employees to qualify for leave. Under the revised law, an employee will be eligible after three months of employment and at least 250 hours worked during the preceding 12 months, replacing the previous requirement of 12 months of employment and 1,000 hours worked. Currently, New Jersey's Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs provide eligible employees with wage replacement while they are on leave but do not independently guarantee job protection. The recent amendments to the New Jersey Family Leave Act (NJFLA) expand these protections by extending job-protected leave to additional employees. Under the amended law, employees receiving TDI or FLI benefits may be entitled to return to the same position they held before taking leave, or to an equivalent position with the same seniority, status, pay, and benefits. Although the legislation also states that it does not expand or modify an employee's reinstatement rights under the NJFLA, the amendments appear to provide job protection to eligible employees receiving TDI or FLI benefits without requiring them to separately satisfy the eligibility requirements of the NJFLA or the federal Family and Medical Leave Act (FMLA). As a result, some employees may be entitled to longer periods of job-protected leave than were previously available under existing law. With these amendments, New Jersey continues to strengthen workplace protections by expanding access to job-protected family leave for eligible employees. These changes significantly expand access to job-protected family leave and may require employers to update their leave policies, employee handbooks, and HR practices. Notably, employers who were previously not required to administer NJFLA may need to amend their policies and/or create new protocols to come into compliance with the NJFLA. Failure to do so would prove costly, as the penalties for non-compliance are significant.