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Rideshare Liability

Ridesharing platforms have revolutionized modern transportation, connecting riders and drivers instantaneously, through mobile apps. The popularity of these technology services is enormous and continues to grow. However, what happens when an accident occurs? Who bears responsibility?

The answer is: it’s complicated.

When an accident occurs involving an operator using a rideshare app, unique legal issues are often created for the rideshare platform, the drivers, riders and their insurers, and other involved vehicles--all of whom can be parties to litigation. Issues relating to the existence of coverage, the priority of coverage, and available policy limits often arise. Claims against rideshare platforms can involve allegations of both direct and vicarious liability. Brand protection and maintaining the confidentiality of trade secret and proprietary information is essential to the rideshare platform defendant.

The attorneys in Marshall Dennehey’s Rideshare Liability Practice are experienced at addressing the complex issues that emerge when claims arise. We are familiar with the prominent ridesharing apps and are knowledgeable of the data that is available from them. We work with a variety of liability and damages experts who specialize in issues applicable to sharing economy cases.

Our experienced team utilizes a process that allows for the prompt review of cases and strategizing with claims professionals about whether a case should be targeted for early resolution, aggressive discovery or trial. Our pre-suit services for catastrophic accidents include:

  • Scene inspection, accident reconstruction, bio-mechanical accident reconstruction responding to preservation requests
  • Assembling a top expert team to assist with investigations and preservation of evidence
  • Vehicle inspections and data downloads
  • Social media and background investigations of claimants
  • Witness location and interviews, and all other facets of pre-suit accident investigation

Many states have enacted statutes governing requirements and liability for rideshare platforms, and issues involving statutory compliance may arise. Also, rideshare litigation is not limited to automobile negligence cases and uninsured/underinsured motorist claims. Rideshare platforms and their insurers must also be prepared to defend cases involving allegations of sexual assault or other intentional conduct.

We routinely handle cases for some of the nation’s largest ridesharing companies, their independent drivers and insurance carriers. We help navigate every step of the legal process, working closely with clients to execute strategies to protect their interests, manage risk and minimize exposure.

Results

Thought Leadership

Florida Appellate Court Affords Lyft Broad Immunity Under Section 627.748(18), Florida Statutes (2022), for the Actions of One of its Drivers

May 15, 2026

Florida’s Fourth District Court of Appeal affirmed the dismissal of negligent and fraudulent misrepresentation claims against transportation network company (TNC), Lyft Florida, Inc., concluding such claims are barred by the plain text of section 627.748(18), Florida Statutes (2022). In Haddad v. Lyft Florida, Inc., 4D2025-017 (Fla. 4th DCA May 13, 2026), a rideshare passenger alleged she was assaulted by her Lyft driver. She sued for negligent and fraudulent misrepresentation, alleging statements on Lyft’s website led her to believe that her ride would be safe and that she would not suffer personal injuries at the hands of a Lyft driver. Lyft moved to dismiss, contending that section 627.748(18) provided it with immunity against such claims. Subsection 18 provides that “[a] TNC is not liable under general law by reason of owning, operating, or maintaining the digital network accessed by a TNC driver or rider…for harm to persons or property which results or arises out of the use, operation, or possession of a motor vehicle operating as a TNC vehicle while the driver is logged on to the digital network” under three circumstances if: (1) there is no negligence under this section or criminal wrongdoing under the federal or Florida criminal code on the part of the TNC; (2) the TNC has fulfilled all of its obligations under this section with respect to the TNC driver; and (3) the TNC is not the owner or bailee of the motor vehicle that caused harm to persons or property. The trial court agreed that subsection 18 provided Lyft with immunity and dismissed the complaint. With the benefit of oral argument, the Fourth District affirmed the dismissal. In doing so, the court concluded that subsection 18’s plain text makes clear that the immunity conferred under section 627.748(18) is much broader than traditional vicarious liability. Thus, the passenger’s claims for negligent and fraudulent misrepresentations, which arose out of the use, operation, or possession of the vehicle operating as a TNC vehicle while the driver was logged on to the network, were barred. It did not matter that the complaint purported to plead negligence by Lyft rather than a traditional vicarious liability theory. The negligent act asserted against the TNC had to relate to a negligent failure to meet the statute’s requirements for rideshare companies. This is a favorable decision for TNC companies. Plaintiffs will need to carefully tailor their allegations to overcome the broad immunity set forth in the statute. Otherwise, their claims will be subject to dismissal out of the gate. TNC companies should look to dismiss Plaintiff’s complaints from the outset. The immunity is not a traditional affirmative defense. Thus, trial courts can rule on the immunity at the motion to dismiss stage.

Case Law Alerts

Florida Court Affirms Dismissal of Claims Against Lyft, Clarifying TNC Immunity at the Pleading Stage

April 1, 2026

Florida’s Third District Court of Appeal affirmed a trial court order dismissing a lawsuit against Lyft, arising from a motor vehicle accident. The plaintiff asserted claims of negligence and vicarious liability against Lyft. The trial court dismissed those claims, and the appellate court entered a per curiam affirmance, citing Florida’s TNC Statute and pleading rule. On appeal, the major point of contention was whether Lyft had to put forth evidence to support its argument for immunity under the TNC statute. Lyft argued no evidence was required, because the trial court concluded they could not be held liable based on the facts alleged in the complaint. While the Third District did not write an opinion, it presumably accepted Lyft’s position. This case suggests that a motion to dismiss can be an appropriate vehicle for rideshare companies to have trial courts determine applicability of TNC immunity.

Firm Highlights

Thought Leadership

New Jersey Expands Family Leave Protections Effective July 17, 2026

On January 17, 2026, Governor Murphy signed into law legislation expanding the New Jersey Family Leave Act (NJFLA). Beginning July 17, 2026, significant amendments to the NJFLA will expand job-protected family leave to smaller businesses and more employees across the state. The new law broadens coverage by lowering the threshold for private employers from 30 employees to 15 employees, meaning many smaller businesses will now be subject to the NJFLA. Employees of state and local government agencies will continue to be covered regardless of the size of the employer. The amendments also make it easier for employees to qualify for leave. Under the revised law, an employee will be eligible after three months of employment and at least 250 hours worked during the preceding 12 months, replacing the previous requirement of 12 months of employment and 1,000 hours worked. Currently, New Jersey's Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs provide eligible employees with wage replacement while they are on leave but do not independently guarantee job protection. The recent amendments to the New Jersey Family Leave Act (NJFLA) expand these protections by extending job-protected leave to additional employees. Under the amended law, employees receiving TDI or FLI benefits may be entitled to return to the same position they held before taking leave, or to an equivalent position with the same seniority, status, pay, and benefits. Although the legislation also states that it does not expand or modify an employee's reinstatement rights under the NJFLA, the amendments appear to provide job protection to eligible employees receiving TDI or FLI benefits without requiring them to separately satisfy the eligibility requirements of the NJFLA or the federal Family and Medical Leave Act (FMLA). As a result, some employees may be entitled to longer periods of job-protected leave than were previously available under existing law. With these amendments, New Jersey continues to strengthen workplace protections by expanding access to job-protected family leave for eligible employees. These changes significantly expand access to job-protected family leave and may require employers to update their leave policies, employee handbooks, and HR practices. Notably, employers who were previously not required to administer NJFLA may need to amend their policies and/or create new protocols to come into compliance with the NJFLA. Failure to do so would prove costly, as the penalties for non-compliance are significant.

Thought Leadership

Congress Passes Financial Exploitation Prevention Act

On June 25, 2026, the House passed the Financial Exploitation Prevention Act of 2025 (“the Act”) by a vote of 414 to 2. The Act allows financial advisors and firms to delay suspicious transactions regarding the accounts of clients who are 65 or older, if they believe financial exploitation has occurred or is about to take place. With the advancement of technology and AI, the House’s overwhelming bipartisan passage of the Financial Exploitation Prevention Act represents an important step in strengthening the financial industry’s ability to combat the growing threat of elder financial exploitation. The Act recognizes what advisors have long known that financial professionals are often the first to detect suspicious behavior but have historically lacked clear legal authority to intervene before irreversible financial harm occurs. From the industry’s perspective, the bill accomplishes several important objectives, including the following: (1) Provides a practical “pause button” by allowing financial professionals to temporarily delay certain transaction requests when there is a reasonable belief that a senior or vulnerable adult is being financially exploited; (2) Empowers financial professionals to act by providing greater certainty that firms can act in good faith to protect clients without unnecessary legal risk; and (3) Strengthens investor protection without sacrificing client rights by allowing temporary delays based on a reasonable suspicion of exploitation, which is intended only to allow additional review and not to deny clients access to their money indefinitely. In sum, the Financial Exploitation Prevention Act will equip financial professionals with practical, carefully tailored tools to stop suspected financial exploitation before client assets are lost. By allowing firms to temporarily delay suspicious transactions under defined circumstances, Congress is recognizing the critical role advisors play as the first line of defense against increasingly sophisticated fraud schemes. The Act strikes an appropriate balance between protecting vulnerable investors and preserving individual financial autonomy, while reinforcing collaboration among advisors, families, and law enforcement to combat financial exploitation. The bill now awaits Senate action.

Thought Leadership

SIU Gets a Boost: NJ Supreme Court Affirms Insurers' Right to Litigate, Not Arbitrate, Fraud Claims

In a significant win for insurers' Special Investigation Units, the New Jersey Supreme Court clarified that statutory insurance fraud and racketeering claims may proceed in court rather than through PIP arbitration. At issue was whether insurance fraud claims brought under New Jersey's Insurance Fraud Prevention Act (IFPA) and the state's Anti-Racketeering Act (NJ RICO) are subject to mandatory arbitration under the Automobile Insurance Cost Reduction Act’s (AICRA) PIP dispute-resolution framework. Allstate had sued a network of medical practices, physicians, and related corporate entities, alleging a scheme to extract more than $1.7 million in PIP benefits through fraudulent and misleading billing. The trial court dismissed Allstate's complaint and compelled arbitration, reading AICRA's arbitration clause — which covers "any dispute regarding the recovery of... benefits" under PIP coverage, N.J.S.A. 39:6A-5.1(a) — as sweeping in fraud and racketeering claims along with routine benefit disputes. The Supreme Court affirmed the Appellate Division's reversal, adopting Judge Gilson's opinion below (480 N.J. Super. 566 (App. Div. 2025)) as its own reasoning. The Court held that IFPA and RICO claims fall outside the scope of AICRA's PIP arbitration mechanism because that "streamlined and specialized" process cannot grant the relief those statutes contemplate — treble damages, injunctive relief, broad discovery, and joinder of third parties — and because arbitrators lack authority to award compensatory or treble damages to an insurer. The Court also rejected the argument that Allstate's own Decision Point Review Plans independently compel arbitration, finding those plan provisions no broader than AICRA's own arbitration clause. Notably, the Court expressly disagreed with the Third Circuit's contrary holding in GEICO v. Mt. Prospect Chiropractic Center, 98 F.4th 463 (3d Cir. 2024), concluding it is not bound by that federal interpretation of New Jersey law. Insurers retain the right to pursue IFPA and RICO claims in the Law Division, with a jury trial. For SIU units and NJ insurance carriers, this decision is a significant win: it forecloses defense clinics' primary procedural tool for shunting fraud investigations into limited-scope PIP arbitration, where treble damages, RICO relief, and meaningful discovery were never realistically available. Carriers building cases against fraudulently structured clinics, straw-owned practices, or coordinated billing networks can now proceed with confidence that a well-pleaded IFPA/RICO complaint stays in the Law Division rather than being diverted to arbitration on a motion to compel. Practically, this strengthens SIU's leverage in settlement negotiations, preserves civil discovery tools (subpoenas, depositions, joinder of related corporate entities) critical to unwinding complex ownership and referral schemes, and resolves the split with the Third Circuit in favor of NJ insurers — at least as a matter of state law. Expect increased reliance on IFPA civil actions, rather than PIP arbitration demands, as SIU's primary enforcement vehicle going forward.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict.