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Appeals court rules against class action in Uber case

September 08, 2016

The Ninth Circuit Court of Appeals upheld an arbitration clause in Uber’s contract with drivers requiring them to arbitrate their claims individually rather than pursue a class action in court, except for only specific claims relating to the California Private Attorney General Act, according to the court’s decision.

The Ninth Circuit’s decision released yesterday was in a case involving drivers dismissed because of consumer credit reports, but The Los Angeles Times reports it will affect other cases. “Having to go to arbitration largely takes the specter of mass litigation off the table,” The Times reported. Cases impacted will include the lawsuits by California and Massachusetts drivers claiming misclassification as independent contractors. In that litigation, a judge recently rejected a proposed $100 million settlement, but had earlier allowed the litigation to proceed as a class action.

Tuesday’s court decision involved two drivers who claim the use of a consumer credit report to terminate their contracts violated Fair Credit Reporting Act. One of the named plaintiff drivers also alleged Uber misclassified him and others as independent contractors.

Bloomberg Technology reports the Appeals Court ruling gives Uber “the upper hand in a hard-fought lawsuit covering 385,000 current and former drivers in California and Massachusetts who sued to be treated as employees rather than independent contractors.”