Economy

Uber ordered to pay $40m over death of woman ejected by driver on freeway

A retired California judge has ordered Uber to pay 40 million dollars to the parents of a young woman who died after being forced out of a vehicle on a busy freeway. The tragedy unfolded in August 2023 when 23 year old Emily Normandin Parker and her friend Luna Moore hailed a ride after a night out in Orange County. According to court documents, the driver pulled over on the 73 freeway after Normandin Parker became ill in the car. Amidst an argument between the driver and Moore regarding a cleaning fee, Normandin Parker exited the vehicle and wandered into oncoming traffic where she was struck and killed.

During the proceedings, Uber attempted to shield itself from responsibility by arguing that it is merely a technology platform connecting independent contractors with passengers rather than a traditional transportation company. This defense relies heavily on Proposition 22, a California law that classifies ride share drivers as independent contractors instead of employees. Uber maintained that because it provides software rather than employing the drivers directly, it could not be held legally accountable for the driver’s specific actions during the trip.

However, arbitrator Richard A Stone rejected those arguments, ruling that Uber functions as a common carrier regardless of whether customers hail cars via an app or on a street corner. By designating Uber as such, Stone found the company vicariously liable for the negligence of its driver. He noted that current labor laws do not provide total immunity for companies when their representatives commit harmful acts. The decision serves as a significant blow to Uber’s long standing effort to distance itself from the legal liabilities associated with its fleet of drivers.

Adding to the controversy, Normandin Parker’s family claimed that Uber previously offered a settlement conditioned on a strict confidentiality agreement. They alleged that had they accepted, they would have faced a 10 million dollar penalty every time they spoke publicly about the accident or Uber’s involvement. While Uber expressed sympathy for the family and stated it has since improved its safety protocols regarding unsafe drop off locations, spokespeople for the company insisted that the arbitrator was wrong to hold them legally responsible for the event.