By Lynn La, CALMATTERS
https://calmatters.org/newsletter/uber-ballot-initiative-doctors-lawyers
A multimillion-dollar battle is playing out between Uber and an opposition coalition over a November ballot initiative that could affect every driver on California roads, writes Levi Sumagaysay.
Since last fall, the ride-hailing service has poured $32.5 million into a proposed ballot measure that would cap personal injury lawyers’ contingency fees to 25%. The measure would also limit medical damages for all car crashes in the state — even those not involving Uber. The company says that by allowing car crash victims to keep 75% of the settlements they receive, less payout money would go to lawyers, who on average receive about 33% of settlements.
- Nathan Click, a spokesperson for Uber’s campaign, in a statement: “Californians deserve a system that prioritizes victims over ambulance lawyers, and that’s exactly what this measure does.”
Critics say that capping fees is a form of price control, and attorney groups, doctors and other medical providers have raised about $55 million so far to fight the proposal. If lawyers do not have enough incentive to take on a case, they could be discouraged from helping crash survivors secure compensation — which is Uber’s ultimate goal, the opposition argues.
- Doug Saeltzer, president of the Consumer Attorneys of California: “Uber wrote it to be expansive, to keep victims from finding attorneys.”
In response to Uber’s efforts, attorney groups have proposed retaliatory ballot initiatives that would make the company more liable for passenger injuries and for sexual misconduct against riders or drivers. Another proposal would ban new state laws that restrict people from hiring the lawyers they want.
At a recent earnings call, Uber executives told investors that they expect the company’s lower insurance costs to boost revenue growth. Last year the company made $14 billion. By early February, Uber had gathered at least 25% of the more than 874,000 signatures it needs to collect by June 8 to qualify for the ballot.
