An Arizona Jury decided that Uber was not Negligent but still hit it with an $8.5 Million Verdict in a Sexual Assault case because it found that the driver was an Apparent Agent.

The lawsuit arose out of an Uber ride in Arizona in which an intoxicated rider claimed that the Uber driver had sexually assaulted and raped her. The victim sued Uber for Negligence in the hiring, training and supervision of the driver but also claimed that the driver was Uber’s Apparent Agent making it automatically liable for his conduct during work.

Uber defended all claims and won the Negligence claim, because there was no evidence of any prior criminal conduct or complaints against the driver.

However, Uber still lost the case on the Agency issue and was hit with a massive verdict.

Uber defended the Agency claim by asserting that its drivers are Independent Contractors rather than Employees or Agents. Under the law of most states, a business that employs Independent Contractors cannot be held legally liable for the misconduct of the Contractor because it does not control how the work is to be done. Without control, it’s unfair to impose liability.

However, if the employer exerts significant control over the way the work is to be done, then the worker is considered an Employee or Agent, making the employer liable for all misconduct that occurs during the work shift.

In this case, there was significant evidence that through its app and policies, Uber exercises substantial control over their drivers, so the Jury concluded that the driver was an Apparent Agent and Uber was liable for his misconduct.

The issue of Agency can be crucial in Serious Injury cases. Although most Uber and Lyft drivers will have significant insurance policies, in the event of a catastrophic injury they are underinsured, making it important to consider the company as an additional target for compensation. At the same time, it’s important to have an experience injury lawyer who is familiar with the Agency issues represent you so that all avenues for recovery are explored.

This Arizona case was a big victory for accident and assault victims, proving that ride share companies like Uber and Lyft can be held legally liable for the actions of their drivers because they are Agents, not Independent contractors.

For more information on claims against Uber or Lyft, or Car Accident or Personal Injury Claims in general, contact Tim Rayne at 610-840-0124 or trayne@macelree.com or check out his website at www.TimRayneLaw.com. Tim has been helping accident victims receive fair treatment from insurance companies for over 30 years and has offices in West Chester and Kennett Square, Pennsylvania.