When you step into an Uber, did you know you are likely giving up your right to go to court if your uber driver injures you in a car accident? So says a recent decision by the Appellate Division of New Jersey.

In March of 2022, Georgia McGinty and her husband were seriously injured when their Uber driver, Zheng, ran a red light and smashed into another vehicle. The McGintys sued Uber (and an Uber subsidiary) for the injuries they sustained in the accident and sought to have their day in court. Uber’s subsidiary pushed back, stating that at the time of the accident, the Uber “Terms of Use” contained an “arbitration provision” – a provision stating that the user agrees to have lawsuits against Uber decided outside of court via a separate process called arbitration that avoids going to court.

In the September 20, 2024 decision in McGinty v. Zheng, A-1368-23 (09/20/24), the Appellate Division found that as long as Uber includes a clear arbitration provision in its Terms of Use, that it binds not only the user to arbitration, but it binds virtually anyone else joining the user for the ride. 

Other key takeaways from the decision include: (1) if you allow someone else to use your Uber account and that person clicks “yes” to agree to changes in the Terms of Use (the “agreement”), the account holder is bound by those acts even if that someone was a minor child; (2) a third-party beneficiary of a user’s agreement with Uber (such as Mrs. McGinty’s husband) is bound by the agreement’s terms even though he never personally agreed to them; and (3) so long as the language of the agreement clearly waives the user’s right to go to court, no other specific language is required. 

So, the next time you get into an Uber, be aware that you and the people you are riding with are likely waiving your right to have your day in court if that ride ends in an accident.

Stay safe and remember that PTGB is here to help you if you are involved in an auto accident.