Howard Stutz, a senior reporter for the Nevada Independent, reported that Uber and Nevada trial lawyers have reached an agreement to limit the ridesharing company's liability. This deal involves both parties agreeing not to pursue legislation or ballot measures for six years. Stutz shared this information in a post on X on March 26.
"Uber, Nevada trial lawyers strike deal through bill to limit ridesharing company liability," said Stutz. "The groups will not pursue bills or ballot initiatives for 6 years in exchange for a bill moving fast through the Legislature."
According to the report, Uber and Nevada trial lawyers have negotiated through Assembly Bill 523 (AB523) to limit ridesharing companies' liability for harms caused by drivers or passengers. The agreement also reduces their insurance coverage requirement from $1.5 million to $1 million. In exchange for the bill’s expedited passage, both sides agreed not to pursue legislative or ballot measures against each other for six years. This development follows years of political battles, legal disputes, and significant financial contributions from trial lawyers to Nevada legislators. The bill aims to shield the company from excessive lawsuits over driver or passenger behavior for incidents occurring after October 1, 2025.
Stutz's March 26 statement
| X.com
Assembly Bill 523 was fast-tracked through a Nevada legislative committee and is designed to protect ride-hailing and delivery companies like Uber from vicarious liability for harm caused by drivers or passengers, provided they maintain at least $1 million in insurance coverage. The bill emerged from a dispute between Uber and the Nevada Justice Association following Uber’s unsuccessful petition to cap attorney fees in civil cases. AB523 is seen as a compromise that offers stability to these companies while ensuring a $1 million insurance coverage minimum to protect citizens. The bill passed the committee with unanimous support and is set for further legislative consideration.
The American Tort Reform Association (ATRA) released two reports on March 1, 2024, regarding the influence of trial lawyers on Nevada's political landscape and public perception. The first report reveals that top plaintiffs' firms have donated over $4.56 million to political campaigns since 2017, particularly targeting candidates for judicial positions. The second report indicates that trial lawyers spent more than $137.2 million on over 1.6 million local legal ads in 2023, focusing heavily on personal injury cases. ATRA President Tiger Joyce said these practices raise consumer concerns, distort public trust, and increase tort costs which contribute to job losses in Nevada.
Nevadans for Fair Recovery said in a fact sheet posted on its website that Nevadans are facing an affordability crisis exacerbated by lawsuit abuse costing the state $3.6 billion annually and adding an estimated $1,042 per person in hidden costs. Frivolous lawsuits drive up prices for businesses and consumers, making essentials like insurance, housing, and transportation more expensive. Addressing legal system abuse is deemed crucial to easing the financial burden on Nevada families.
Howard Stutz has been recognized as an award-winning journalist with nearly four decades of experience in Las Vegas journalism. He joined The Nevada Independent in 2021 to cover gaming and tourism after freelancing for the publication. Previously, he worked at the Las Vegas Review-Journal where he earned multiple awards from the Nevada Press Association and served as executive editor of CDC Gaming Reports.