Uber's Arbitration Clause Halts NJ Couple's Legal Action Following Car Accident
ICARO Media Group
### NJ Couple's Legal Bid Blocked by Uber's Arbitration Clause
A New Jersey couple has been thwarted from pursuing legal action against Uber after the company successfully argued that a prior arbitration agreement prevents them from heading to court. John and Georgia McGinty sustained critical injuries in March 2022 when their Uber driver ran a red light, causing a severe car accident.
The legal twist came when Uber contended that an arbitration clause accepted in January 2022 bars the McGintys from filing personal injury claims. This clause was agreed to by someone using Georgia's phone, which the couple believes was their then-12-year-old daughter, who had accepted the terms while ordering pizza via Uber Eats.
A New Jersey court of appeals sided with Uber in a ruling issued on September 20, reversing an earlier decision by a lower court that had favored the McGintys. The superior court appellate division declared that the arbitration agreement, accepted by Georgia or her daughter using her cell phone, was "valid and enforceable."
The McGintys expressed their dismay over the decision, highlighting their surprise and heartbreak at Uber's enforcement of the arbitration clause to avoid liability. They argued that the extensive terms presented during a simple food order on a smartphone make it improbable for anyone to fully comprehend the significant rights they might be waiving.
Despite the setback, the McGintys have announced plans to appeal the court's decision. Their case echoes a broader trend where companies use arbitration agreements from other platforms to shield themselves from lawsuits. In a recent instance, a widower's wrongful death lawsuit against Disney faced challenges because of terms agreed upon by his late wife during a free trial of Disney's streaming service, Disney+.
The ongoing legal battle highlights the increasing prevalence and controversial impact of arbitration agreements in consumer contexts, raising questions about fairness and transparency.