A New Jersey couple, severely injured in a car accident during an Uber ride, has been prevented from suing the company after a court ruled they were bound by an arbitration agreement signed while ordering from Uber Eats.
John McGinty and Georgia McGinty were involved in the crash in March 2022, when their Uber driver ran a red light and was struck by another vehicle. The collision left both with significant injuries, including multiple fractures for Georgia and lasting impairment for John.
According to court filings, they suffered “serious physical, psychological, and financial damages.”
Despite their injuries, the couple's attempt to take Uber to court for a jury trial was not allowed. The ruling cited the terms and conditions, including a mandatory arbitration clause, of Uber's services. This clause was accepted when the couple's daughter placed a separate order on Uber Eats using Georgia's phone. The court upheld the company's argument that by agreeing to Uber's terms during that transaction, the family waived their right to pursue claims in court.
The couple argued that it was their minor daughter, using Georgia's phone, who accepted the terms of service for Uber Eats by clicking a button that falsely confirmed she was over 18. However, the court concluded the arbitration agreement, which covers auto accidents and personal injuries, was “valid and enforceable.”
In response, Uber told CNN that Georgia “agreed to Uber's terms of use, including the arbitration agreement, on multiple occasions,” and even took rides after agreeing.
“While the plaintiffs continue to tell the press that it was their daughter who ordered Uber Eats and accepted the terms of use, it's worth noting that in court they could only ‘surmise' that that was the case but could not recall whether ‘their daughter ordered food independently or if Georgia assisted," CNN quoted a spokesperson as saying.
The couple expressed disappointment in a statement, saying they were “surprised and heartbroken” by the ruling. “We are horrified at what the court's decision suggests: A large corporation like Uber can avoid being sued in a court of law by injured consumers because of contractual language buried in a dozen-page-long user agreement concerning services unrelated to the one that caused the consumers' injuries,” CNN quoted the McGintys as saying.
Previously, a lower court said that Uber's arbitration clause was not enforceable, arguing the terms of service pop-up did not inform Georgia that she was waiving her right to a judicial trial. However, following an appeal from Uber, the appellate court reversed that decision, siding with the company.
The McGintys' legal team is considering further action, with their lawyers telling CNN that they will “likely” petition the New Jersey Supreme Court.
