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Uber has won an appeal requiring Georgia and John McGinty to pursue their claims against the company in arbitration rather than court. On September 20, 2024, a New Jersey Superior Court Appellate Division panel reversed a trial-court order, finding that the applicable Uber terms clearly required binding arbitration “and not in a court of law.” The ruling did not decide who was responsible for the crash or whether the couple should receive damages.
What happened in the McGinty case
Georgia and John McGinty were passengers in a vehicle involved in a March 31, 2022 crash. They sued Uber and the driver, Jia Wen Zheng, and the court’s ruling, as described in reporting, said both plaintiffs suffered serious injuries.
Before the crash, an account associated with Georgia McGinty accepted an update to Uber’s December 2021 terms. The plaintiffs said their 12-year-old daughter accepted the terms on Georgia’s phone while ordering food through Uber Eats. Uber disputed that account and said Georgia had accepted terms herself on multiple occasions.
The terms covered disputes related to use of Uber’s services, including personal-injury and auto-accident claims, and required binding arbitration instead of a court proceeding. In November 2023, the trial court denied Uber’s request to compel arbitration, concluding that the updated terms did not clearly notify the user that she was giving up the ability to pursue claims in court. Uber appealed.
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Why the appeals panel required arbitration
The three-judge panel concluded that the clause’s words requiring binding arbitration “and not in a court of law” clearly and unambiguously communicated that disputes covered by the agreement had to be resolved outside court. The panel said the terms did not need to use the specific word “jury” to make that point.
The panel’s opinion in McGinty v. Uber Technologies, Inc., A-1368-23, dated September 20, 2024, stated: “We hold that the arbitration provision contained in the agreement under review, which Georgia or her minor daughter, while using her cell phone agreed to, is valid and enforceable.” The quoted wording addresses the enforceability of the arbitration provision; it does not resolve the separate dispute over who accepted the terms.
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Who accepted the terms remains disputed
The appellate court did not decide whether the daughter had legal capacity to accept updated terms on her mother’s behalf. It left that threshold question, including the plaintiffs’ argument based on the daughter’s age, for the arbitrator to decide.
That distinction matters: the panel required the dispute with Uber to move to arbitration, but it did not finally determine whether the daughter validly bound her mother. Uber’s account—that Georgia herself accepted terms on multiple occasions—also remains part of the parties’ dispute.
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What the ruling does—and does not—mean
The decision settled the forum question at this stage of the case: the McGintys’ claims against Uber must proceed in arbitration rather than in court. It did not determine Uber’s liability for the crash, award damages, or decide the claims against the driver. Any financial recovery the couple obtains from Uber would have to be ordered by an arbitrator.
The case illustrates why app terms can matter beyond a user’s immediate transaction. Here, the disputed update was accepted through an account used for Uber services before a later crash claim arose; the court found its arbitration language covered that type of dispute. The outcome concerns this New Jersey case and its particular terms, not a blanket determination that every Uber-related injury claim must go to arbitration.
Sources: New Jersey Superior Court Appellate Division opinion; Ars Technica’s September 30, 2024 report.
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