Can You Sue Uber or Lyft Directly After a Serious Accident in Oklahoma?

Many Uber and Lyft accident victims cannot directly sue the rideshare company because drivers are considered independent contractors. Nonetheless, there are situations in which victims may be able to sue Uber or Lyft. Knowing whether this is an option and how arbitration might be relevant can expand your legal options after a wreck.

Regardless of how you seek compensation for your losses, you will need skilled legal representation. The Oklahoma City rideshare accident lawyers of Cunningham & Mears regularly advocate for victims of rideshare accidents. Learn more about how we can serve you.

Drivers are often considered contractors

In a traditional negligence case, an employer is liable for its employees’ actions when those actions occur in the scope of the job. This is known as respondeat superior. But Uber and Lyft have intentionally built independent contracting into their business model to avoid this problem.

Uber and Lyft may try to shield themselves from corporate liability for an accident by claiming their drivers are independent contractors. Both companies routinely argue that because their drivers are not employees, the company is not liable for accident victims’ injuries.

The definition of “independent contractor” varies from one jurisdiction to another. In Oklahoma, courts generally look at the degree of control over the worker and several other statutory factors to determine whether someone is an independent contractor or employee, including:

• Performs certain services for someone else (such as driving);
• According to their own method and manner, and
• Free from the control and direction of the party with whom they are contracted.

For example, Uber or Lyft would likely argue that these reasons, among others, make their drivers independent contractors:

• A driver has the freedom to accept or decline a ride request
• Drivers can work their own hours and locations
• Drivers use their own vehicles

There has been considerable debate as to whether rideshare drivers are really independent contractors or actually employees. For now, however, this remains a strong defense that either Uber or Lyft can use to avoid being directly sued after an accident.

When can a victim sue Uber or Lyft?

Despite the independent contractor defense, there are some situations in which a victim may be able to file a lawsuit against the rideshare company itself. Among these are:

• Negligent hiring: A victim may be able to show that Uber or Lyft failed to perform proper background checks and allowed an irresponsible driver onto their platform.
• Negligent retention: There may be evidence that the company was aware of a risk (for example, after another passenger complained) yet failed to terminate their relationship with the driver.
• Appearance as an agent of the company: There have been situations in which Uber and Lyft took steps to give the appearance that the driver acted as the company’s agent or representative, and a victim relied on that to their detriment.
• Negligence related to the platform: If there was something specifically wrong with the rideshare app, like a defect that distracted the driver and caused an accident, this could open a potential path to suing the company directly.

These are all situations in which Uber or Lyft could be brought into a lawsuit as a defendant. However, when the victim is a passenger, arbitration can limit their ability to directly sue the company.

What passenger victims should know about arbitration

When a victim wants to hold someone liable for causing their injuries, the traditional route is litigation. This means filing a lawsuit and going to court. In recent years, however, something called arbitration has become a popular alternative.

Arbitration can avoid the time and expense of a lawsuit. Instead of having a judge or jury decide your case, a private, neutral third-party known as an arbitrator decides it. Arbitration often involves these steps:

• Filing a claim with the private arbitration organization
• Both sides select the arbitrator
• Limited and usually less formal discovery, which is the request and exchange of relevant information and documents
• A hearing, similar to a court proceeding, but often with more relaxed rules compared to a court
• The arbitrator makes a decision, usually binding, called an award

When a customer signs up for Uber or Lyft, they must agree to the rideshare company’s terms of service. These terms include a mandatory arbitration clause by which the customer agrees to waive their right to sue in court and agrees instead to use an arbitrator.

Importantly, however, this limitation only applies to passengers and drivers because they are the ones who actually agreed to the terms of service when they downloaded the rideshare app. So while Uber and Lyft can often invoke arbitration against their drivers and passengers, they may not be able to do so against a third-party victim like a pedestrian.

How arbitration differs from court

Arbitration is unlike a court trial in several ways:

• A private arbitrator, not a judge or jury, makes the decision
• Arbitration is private and confidential, while a court is public
• Rules of evidence, procedure, and discovery are more flexible with arbitration
• Discovery is more limited, which can restrict access to certain evidence
• Arbitration is typically faster than a trial
• There are very limited rights to appeal an arbitrator’s award

How our law firm can help you after a rideshare accident

The differences between arbitration and litigation are important, and what type of accident victim you are (a passenger versus a third party, for example) will largely affect which route you can take for compensation.

We understand what is at stake for you after being in a rideshare accident. You may have serious medical bills, lose time from work, and endure pain and suffering. You may have a disability that prevents you from ever working again.

These are real concerns, so our aim is to give you peace of mind while exploring the best option for handling your situation. As your personal injury law firm, we can represent you and help you understand whether arbitration or litigation is the likely route for you. We also walk you through the complexities of rideshare insurance coverage.

We are committed to seeking justice for our clients and representing them with the professionalism and compassion they deserve. Learn more about why so many Oklahoma City rideshare accident victims trust Cunningham & Mears by getting in touch with us today.