A US federal jury on Thursday ordered Uber to pay $8.5 million in compensatory damages to a passenger who alleged she was sexually assaulted by her driver, marking the first plaintiff victory in a multidistrict litigation including thousands of similar claims.
Thursday’s verdict hinged on the legal theory of apparent authority, under which a company can be held liable for a contractor’s actions when the company’s conduct leads a customer to reasonably believe the contractor is acting on the company’s behalf, even in the absence of a formal employment relationship. Here, the jury found that the driver was acting as an apparent agent of Uber, holding the company responsible for his actions despite Uber’s longstanding position that drivers are independent contractors beyond the company’s vicarious liability.
The plaintiff’s initial complaint alleged 10 causes of action against Uber, including general negligence, negligent hiring and supervision, infliction of emotional distress, and product liability for design defects. At trial, her attorneys requested $24 million in compensatory damages for past and future mental health harms and $120 million in punitive damages, arguing that Uber’s substandard safety protocols warranted substantial punishment.
The jury awarded $8.5 million in compensatory damages based on the apparent authority theory, finding that the driver acted as Uber’s agent. However, the jury rejected the plaintiff’s other claims and declined to award any punitive damages. Trial evidence revealed that Uber’s internal Safety Risk algorithm rated the trip 0.81 out of 1, indicating elevated risk, yet dispatched the ride without warning. This evidence proved insufficient for the jury to find design defects or negligence.
This case is part of In re: Uber Technologies Inc., Passenger Sexual Assault Litigation, which consolidates over 3,000 individual federal lawsuits filed by passengers across the country alleging sexual assault or misconduct by Uber drivers. In October 2023, the Judicial Panel on Multidistrict Litigation transferred cases pending in multiple federal districts to the Northern District of California under Senior US District Judge Charles Breyer. Unlike a class action where all plaintiffs share one outcome, the multidistrict litigation structure allows each plaintiff to maintain an individual case while still benefiting from shared discovery.
Thursday’s verdict marks a landmark outcome that signals exposure for Uber as the other trials proceed and likely carries significant influence in settlement negotiations for the thousands of remaining claims. This comes amidst a wave of recent litigation involving the rideshare platform. Last November, New Zealand’s Supreme Court held that rideshare drivers are employees, not independent contractors, granting drivers access to minimum wage protections, paid leave, and collective bargaining rights. Last September, the US Department of Justice filed a lawsuit against Uber, claiming the company has engaged in discriminatory practices against clients with disabilities.
