A New Jersey appeals court has handed Uber a significant victory in a personal injury lawsuit, ruling that the company’s arbitration provision is valid and enforceable. The case stems from a 2022 accident in which an Uber driver ran a red light, causing severe injuries to passengers John and Georgia McGnity. The couple filed suit against Uber in 2023, but the company argued that Georgia had waived her right to a court trial when she agreed to Uber’s terms of use in 2015 and again in 2021 and 2022.
The McGnitys countered that their daughter may have unintentionally accepted the updated terms in 2022 while using Georgia’s Uber Eats account to order food. However, the appeals court disagreed, finding that Georgia herself had agreed to the terms on multiple occasions. This ruling means that the dispute will be resolved through arbitration, a process in which a neutral third party makes a binding decision.
Uber’s success in this case highlights the growing trend of companies including arbitration clauses in their terms of service. Many major corporations, including Disney, have used similar provisions to try to avoid costly and time-consuming lawsuits. In fact, Disney recently attempted to use an arbitration agreement to dismiss a wrongful death lawsuit, although it ultimately abandoned this effort. As more companies turn to arbitration to resolve disputes, it remains to be seen how this will impact consumers’ ability to seek justice through the courts.
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