Assembly Bill 523, currently under consideration in Nevada, seeks to address a longstanding dispute between trial lawyers and ridesharing companies like Uber. According to Eric Neugeboren, a reporter with the Nevada Independent, the bill aims to limit the liability of these companies and reduce their insurance coverage requirements from $1.5 million to $1 million. Neugeboren shared this information in a post on March 24.
"A bill was just introduced in the Nevada Assembly that sources familiar say represents a resolution to the yearlong dispute between state trial lawyers and Uber," said Neugeboren. "AB523 says ridesharing companies would not be liable for the actions of a driver or passenger that cause harm. The bill would also decrease how much ridesharing companies must provide in insurance coverage to drivers from a minimum of $1.5M to $1M."
The bill has been expedited through a Nevada legislative committee and proposes to shield ride-hailing and delivery companies from vicarious liability for harm caused by drivers or passengers, as long as they maintain at least $1 million in insurance coverage. This legislative move follows Uber's unsuccessful attempt to cap attorney’s fees in civil cases and is seen as a compromise that offers stability to these companies while ensuring protection for citizens. The bill, applicable to cases after October 1, received unanimous support from the committee and awaits further legislative review.
Neugeboren's March 24 Statement
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On March 1, 2024, the American Tort Reform Association (ATRA) released two reports highlighting the influence of trial lawyers on Nevada's political scene and public perception. The first report reveals that leading plaintiffs' firms have contributed over $4.56 million to political campaigns since 2017, particularly targeting judicial candidates. The second report indicates that trial lawyers spent more than $137.2 million on local legal advertisements in 2023, focusing heavily on personal injury cases. ATRA President Tiger Joyce expressed concerns that these practices distort public trust and inflate tort costs, potentially leading to job losses in Nevada.
Nevadans for Fair Recovery said on its website that residents are grappling with an affordability crisis exacerbated by lawsuit abuse, which reportedly costs the state $3.6 billion annually and adds approximately $1,042 per person in hidden expenses. The organization argues that frivolous lawsuits drive up prices for businesses and consumers, affecting essentials such as insurance, housing, and transportation.
According to InsuranceRateReporter.com on February 18, a survey conducted by the American Property Casualty Insurance Association (APCIA) and Munich Re US found that tactics employed by plaintiff lawyers contribute significantly to rising insurance costs. These tactics include third-party litigation funding (TPLF) and jury anchoring, with an estimated impact of $529 billion on the U.S. economy. The survey reveals that 69% of Americans believe these practices increase insurance premiums while 86% support legal reforms; however, many remain unaware of these tactics.
Eric Neugeboren is a Politics and Data Reporter based in Las Vegas who joined The Indy in 2023 after completing his education at the University of Maryland.