An arbitrator orders Uber to pay $40M to the parents of a woman fatally hit by a car after an Uber driver ordered her out of his car in 2023

Uber's liability for driver actions may extend beyond what was intended by Proposition 22.

An arbitrator has ordered Uber to pay $40 million to the parents of Emily Normandin-Parker, a 23-year-old woman who was killed in 2023 after an Uber driver left her on a Southern California freeway. The driver, Vu Tran, stopped on the State Route 73 gore point after one of his passengers, Luna Moore, became ill. An argument ensued between Tran and Moore, and Normandin-Parker, inebriated, wandered into traffic and was struck by another vehicle. The arbitrator, retired judge Richard Stone, rejected Uber's defense that California's Proposition 22, which classifies drivers as independent contractors, shields the company from liability. Stone ruled that Prop. 22 does not exempt Uber from vicarious liability for its drivers' actions, stating that voter materials for the proposition did not mention such a liability exemption. Uber had argued that the incident was due to the passengers' intoxication and not the driver's actions, and that it had no duty to train Tran beyond a background check, as he was an independent contractor. Uber plans to appeal the decision, with a spokesperson stating they believe the arbitrator was wrong.

This ruling directly challenges the interpretation of Proposition 22, which Uber and other gig companies heavily funded, aiming to maintain drivers as independent contractors. The arbitrator's finding that Prop. 22 does not immunize Uber from vicarious liability signals a potential shift in how these companies can be held accountable for incidents involving their drivers. This could lead to increased scrutiny of driver conduct and stricter safety protocols, potentially impacting Uber's operational costs and its relationship with drivers.

The decision's emphasis on Uber's duty of care as a common carrier, rather than solely a technology platform, could set a precedent for other ride-sharing and delivery services. Companies may need to re-evaluate their legal defenses and insurance requirements, especially in light of the arbitrator's statement that Uber engages in its current approach at substantial risk if it fails to change policies. This outcome could empower passengers and their families in future legal disputes and may prompt legislative or regulatory reviews of gig worker classification and corporate responsibility.