A New Jersey appellate court has ruled against a couple who suffered life-changing injuries when an Uber driver ran a red light. According to court filings, John and Georgia McGinty from Mercer County filed a lawsuit against the company in February 2023, a year after they received their injuries.
Georgia McGinty sustained multiple broken bones, forcing her to take a year away from her work as a matrimonial lawyer. Her husband, John McGinty, required surgery and a bone graft because of the severity of his fractures.
Although the injuries clearly weren’t their fault, as they were riding in the back of an Uber when their driver ran a red light in March 2022, appeal judges have cited Uber’s forced arbitration provision contained in its terms and conditions.
Uber Ruling – Couple in Uber Crash Can't Sue
Georgia and John McGinty are a New Jersey couple undone because their underage daughter had agreed to Uber’s latest terms and conditions via the Uber Eats app when trying to order food. Plus, Uber claims the account received full-screen pop-ups on multiple occasions, with its updated terms of use before they could use the service.
Judges in the Garden State agreed in their court documents that it didn’t matter that their minor daughter had clicked the terms and conditions, despite being under 18, because the account was registered in Georgia McGinty’s name. The court concluded that giving her daughter her cell phone agreed to delegate responsibility to her daughter, regardless of age. Georgia McGinty had delegated responsibility to her daughter by giving her her phone in the first place.
Most people wouldn’t be aware of this clause because – as the McGintys pointed out – the forced arbitration agreement was buried in dozens and dozens of pages of terms and conditions.
Unfortunately, this isn’t the first time companies have escaped being sued because of their tech platforms. In the summer of 2024, another couple was banned from suing Disney because of the terms and conditions of its Disney+ streaming service. A man couldn’t file a wrongful death lawsuit when his wife died at a Disney World restaurant because they’d agreed to the “linked” terms of use on the Disney+ streaming platform.
Luckily, in the Disney case, the company waived its right to force arbitration due to the public backlash.
The McGinty’s attorney, Mike Shapiro, stated that the court's decision suggests:
"It's amazing to me the reach that these things are going to go to. If you shop at a store and you're a member of their loyalty program, you're gonna be agreeing to arbitration. If you're on the street and you're hit by an Uber, even though you're not currently in it, but you're an existing Uber customer, is that the extent of the reach that they want to have their agreement hit?”
Shapiro also mentioned that he’s representing a Spanish-speaking client who is fighting against the company over terms and conditions. This client set his app to his native language of Spanish, but he was forced to sign the terms and conditions in English.
The McGinty’s case is sadly one of an increasing number of cases popping up against leading tech companies, and it’s clear that the issues of consumer rights and how much power terms of use have are on the table, with court rulings over the next few years key to determining what the future will look like.
Why Uber Wants Forced Arbitration and What It Means for Injured Consumers
Uber's arbitration clause essentially means that anyone who’s hurt by an Uber driver cannot file a personal injury lawsuit through an attorney, as they would when involved in an accident that wasn’t their fault.
Instead, it would force consumers to agree to some form of out-of-court settlement, with no option to take the issue to court if they don’t agree with the sum being offered. From Uber’s perspective, this enables them to lowball accident victims and lower their legal costs.
With a ScienceDirect study finding that one-third of rideshare drivers reported being involved in at least one work-related crash, this situation poses a serious barrier to claiming the compensation you deserve.
According to Uber’s terms of use, they state: “You and Uber agree that any dispute, claim or controversy in any way arising out of or relating to your access to or use of the Services at any time… will be settled by binding individual arbitration between you and Uber, and not in a court of law.
Initially, the New Jersey lower court ruled that the contractual language buried in their terms wasn’t proper and didn’t provide suitable technical explanations. The appeals court overruled this and also determined that the couple’s daughter accepting the terms and conditions didn’t invalidate this clause.
Does Uber’s Forced Arbitration Clause Apply to Third-Party Drivers?
The McGintys agreed to waive their right to take cases to court by agreeing to the updated terms of use set by Uber. But does the same issue apply to third-party drivers who are hurt by Uber drivers?
Insights Success found that 94% of Uber-related accidents involved a third-party driver, meaning you’ve got a reasonable chance of finding yourself in this situation. However, the good news is you would still be able to sue if you were injured as a third-party driver because you weren’t using the Uber service at the time, meaning the app’s terms of use do not bind you.
Could you be undone if you’re already an Uber user who has agreed to the platform’s terms of use via services unrelated? It’s never been tested in court, but it’s unlikely because simply being an Uber user doesn’t mean much if you weren’t using the service at the time.
New Jersey Supreme Court Appeal
The couple still has the option of appealing to the New Jersey Supreme Court to get a final ruling on the subject. However, there are no guarantees that the Supreme Court of New Jersey will agree to hear the case.
On the other hand, judging by how significant this case is and terms of use agreements coming under increased scrutiny, the couple may have a chance to win their case. Should they win their case, they would be able to pursue a personal injury claim against the company.
Regardless of the result, it still doesn’t eliminate the problem that by using these third-party apps, you’re also waiving your right to pursue the company for compensation in a court of law.
Bear in mind that there is also the option of suing the Uber driver personally through their insurance company. Currently, the terms of use only prevent you from suing Uber themselves, but there are no such protections for the drivers themselves.
Many people are unaware of this point, which is yet another reason why it’s essential to hire a San Antonio Uber Accident Lawyer to fight your case.
Do You Need a Lawyer If You Have Been Involved in an Uber Accident?
Retaining a lawyer after an Uber accident is critical to protecting your legal rights and maximizing the compensation you’re entitled to. Legal professionals wield the knowledge and expertise of the legal system to ensure you don’t get taken advantage of by Uber.
Here are the reasons why hiring a lawyer always makes sense:
Get Your Claim’s Worth – Lawyers know exactly what you’re entitled to claim for and how much your claim could be worth. They don’t just examine serious injuries but also other intangible losses, such as pain and suffering, loss of companionship, and loss of quality of life.
Navigate Insurance Negotiations – You can’t sue Uber under their arbitration clauses, but you can sue the Uber driver’s insurer, just like you would with any other driver. Your lawyer knows the insurance process and the underhand tricks insurers try to avoid paying out compensation.
File a Lawsuit – If you’ve got to file a formal lawsuit, your lawyer will do this for you. They know how to fill out the forms, comply with your state’s statute of limitations, and what to do if you’re forced to go to a jury trial.
Peace of Mind – Above all, lawyers take the reins of your case, giving you the peace of mind and breathing space needed to recover from your injuries. With a lawyer in hand, you’re making an investment in your health and well-being.
Although legal precedent rules in favor of Uber, this doesn’t mean you’re out of options. You’re perfectly entitled to enter forced arbitration with the help of your lawyer and sue the Uber driver’s insurer.
Regardless of which path you take to recover your losses, a car accident lawyer is there to fight your corner.
