"If you're one of the venture capitalists who floated the loans to Uber to come up to Toronto, you've been reaping a pretty handsome reward, but that money has come out of the pockets of the people who provide the service, and it's come in out of the quality of life in the city of Toronto," said Gord Perks on December 10th. Photo: Taxi News
NewsRide Hailing news

Uber Terms exclude lawsuits, couple finds

US couple injured in Uber crash, cannot sue Uber

A couple who were left with life-changing injuries after their Uber crashed have learned they cannot sue Uber because of the terms they accepted when using the app, the BBC reports.

New Jersey residents Georgia and John McGinty, bound by a clause saying they could not take the case to a jury in a court of law because they clicked a “confirm” button on the app when asked if they agreed with Uber’s terms of use.

Uber users in Canada must accept a similar condition when agreeing to Uber’s terms and conditions. In addition, users must expect to pay a fee simply to engage in arbitration, as Uber’s Canadian terms note “You will have to pay some fees to arbitrate, as described in the ADRIC Rules.”

Snippet of Uber’s Canadian Terms and Conditions for use.
Image: Uber

Item #7 of Uber’s Canadian terms reads:

“7. DISPUTE RESOLUTION

IMPORTANT: PLEASE READ THE FOLLOWING ARBITRATION REQUIREMENT CAREFULLY. YOU WILL HAVE TO RESOLVE DISPUTES THROUGH ARBITRATION. YOU WILL NOT BE ELIGIBLE TO GET MONEY OR OTHER RELIEF THROUGH A COURT PROCEEDING. 

ARBITRATION REQUIREMENT 

You are free to get advice or representation from a lawyer about this arbitration requirement.

Unless prohibited by law, all disputes arising out of or relating in any way to: i) these Uber Terms, ii) the Uber Services, iii) your access to or use of the Applications, or iv) advertisements, promotions or oral or written statements related to the Applications or any other Uber branded product will be finally and conclusively adjudicated and resolved by arbitration under the Arbitration Rules (“ADRIC Rules”) of the ADR Institute of Canada, Inc. (“ADRIC”), except as modified here. The arbitration will be in English or French as you choose. The arbitration may be held anywhere the arbitrator considers appropriate, including remotely by telephone or Internet.

The ADRIC Rules are available by, for example, searching <www.google.ca> to locate “ADRIC Arbitration Rules” or by clicking here. You can also contact ADRIC at 1-877-475-4353 or <www.adric.ca>.

You will have to pay some fees to arbitrate, as described in the ADRIC Rules.

However, before beginning the arbitration, the party with the claim will first try to informally negotiate with the other party, in good faith, a resolution of the dispute for not less than 30 days but no more than 45 days unless extended by agreement. During the negotiation period, any otherwise applicable limitation period will be tolled (temporarily suspended).

Nothing here prevents you from filing a claim with a government agency.

Where you allege claims of sexual assault or sexual harassment, you may choose to bring those specific claims in court instead of arbitration. Uber agrees to honour your choice of forum with respect to your individual sexual harassment or sexual assault claim but in doing so Uber does not waive the enforceability of any other part of this section 7.

This arbitration requirement survives: (i) the termination of this Agreement and (ii) the bankruptcy of any party. If any part of it is deemed invalid or unenforceable, the other parts remain in force.”

The McGintys argue they had not understood they were forfeiting their right to sue the company.

Arbitration means the dispute is settled through a third party rather than in court – in this case a lawyer appointed by Uber, which legal experts say it tends to result in smaller financial settlements.

In March 2022, Georgia and John McGinty were riding in an Uber in New Jersey when it crashed, and they suffered extensive injuries.

“I was in the critical care unit for a week,” Mrs. McGinty told the BBC.

“I had a horrible post-operative infection and almost died during this time, I wasn’t able to care for my child who was suffering from unrelated injury,” she said.

Her husband John fractured his sternum and sustained injuries to his hand.

“I shattered my wrist, broke my hand, and I have a steel rod with about nine pins in it. I don’t have full function of my left hand,” John told the BBC. “I am in pain every day.”