Uber In Toronto: Getting Ugly?

Toronto Personal Injury Lawyer Albert Conforzi: The latest chapter in the Toronto/Uber saga is threatening to become very Punch Imlach: If you can’t beat’em in the courts, beat’em in the alleys:

At least 99 UberX drivers now face 198 bylaw violations as the City of Toronto fights to rein in the California-based ride-sharing giant. 

The city says it will keep charging private vehicle owners trying to make some extra cash by connecting with passengers through the Uber app. Cheering on the city is the traditional taxi industry, whose representatives say unlicensed “bandits” are putting passengers at risk and could bankrupt those who follow the city’s rules.

Having lost their initial challenge of Uber X, the City of Toronto is now trying to wear down the weakest links in the piece—the independent contractor drivers. By-Law enforcement officers are now out writing up a storm of citations against the little guy. Again, time will tell to what, if any, extent it will be successful. Perhaps more energy should be spent trying to figure out what a new taxi or limo registration machine should look like.

Unfortunately, if the legal issues aren't ironed out soon, things could get ugly:

Toronto cab drivers block an UberX driver from accepting a passenger and threaten to take his GPS device in a video shared online. 

The video, shared by Justin Burrows, an UberX driver himself, shows the altercation which took place near the Fairmont Royal York hotel on Front Street West last week. Burrows says it's video evidence of the growing hostilities between traditional cab drivers and those who drive for Uber, a battle that's being fought at city hall and in the streets. 

The last things we need is violence in the streets over hailing a ride. City Hall needs to solve this issue, and quickly.

I recently had my first Uber ride while in Manhattan. It was a black car service. The driver had a registration as a limo driver ($350.00 approx.) and insurance as a vehicle for hire. His arrival was prompt; his demeanor was professional; his music playlist was excellent; and the fixed price fare was affordable going from lower to mid-town Manhattan. The only thing that he did not have was a New York city taxi medallion that costs about $50,000. As a customer, I was more than satisfied. As far as I could tell, my driver was pretty happy with the way things were going, too.

The world is changing and Uber is filling a need that the old traditional forms of passenger livery are not serving. If that weren't the case, Uber would be failing as opposed to spreading around the world.

There won't be stopping this tide in Toronto for long. Cool heads need to prevail in making this transition as peaceful and convenient as possible.

I am a personal injury lawyer with Pace Law Firm in Toronto. Contact me if you have any questions.

Can I Sue Uber After An Accident?

Albert Conforzi - Toronto Personal Injury Lawyer: Uber is a hot topic these days, both for the convenience it provides riders, and the anger it stirs up among professional driving services.

An example of the latter can be found in a $410 million class-action lawsuit that was launched last week by a Toronto taxi driver seeking an injunction against Uber on behalf of all taxi and limousine drivers. The suit alleges that Uber is breaking the Ontario Highway Traffic Act, which requires licenses and permits as prerequisites for picking up passengers for compensation. We will follow the lawsuit as it unfolds.

Suing Uber

As for Uber's popularity among the public, one question that I'm hearing more often is, "If I get in an accident in an Uber car, can I sue Uber?"

The first part of the answer is that there is a difference between Uber Black, the classic option with licensed chauffeurs in expensive sedans, and Uber X, the option where Steve shows up in his 2005 Corolla and gives you a lift. Indeed, Uber is mutating at a very quick pace, with Uber Black, Uber Select, Uber car pools, and even Uber Eats on the menu (they pick up your food).

Let's look at Uber X, which uses regular people driving their own vehicles. Ordinarily, the insurance that all motorists carry for private passenger vehicles in Ontario prohibits carrying passengers for hire. It is a breach of the insurance policy to do so. There is an endorsement that can be purchased to allow for carrying passengers for hire, but it is very expensive, which would defeat the whole point of being an Uber X driver.

If you have an accident in an Uber X vehicle, there is a high likelihood that the driver's insurance company will claim a policy breach. This will severely limit compensation recovery if the Uber X driver is solely at fault.

What Is Uber, Anyway?

As for suing Uber itself, neither Uber nor its employees are owners or operators of the motor vehicle. The drivers are independent contractors. As such, Uber would arguably not have vicarious liability for the operation of the motor vehicle. Additionally, Uber is not even a taxi broker according to the Superior Court decision released at the beginning of July involving the city of Toronto's challenge. But then, that decision was followed by reports of Uber drivers in Toronto facing fines anyway, while a new question about Uber paying HST has cropped up, too. Where's this all going? Good question.

While Uber apparently carries a substantial umbrella policy in case of accidents, access to it may prove to be very difficult, unless the nature of the loss arises from a breach of Uber's obligations regarding background checks for drivers or vehicles. Obviously the entire Uber situation is evolving and access to additional information regarding how the company does business is likely to become more readily available in the near future.

Unfortunately, there's a good chance that we won't know the answer to some of these questions until someone is severely hurt in an Uber car and the case makes headlines. Then we will hear the arguments and see on which side of the law Uber ends up.

I am a personal injury lawyer with Pace Law Firm in Toronto. Contact me if you have any questions.