Newsom signs law that lets Uber, attorneys avoid ballot measure fight

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Gov. Gavin Newsom on Thursday signed a bill that came out of a deal between Uber and California lawyers, shaving two competing initiatives that likely would have driven hundreds of millions of dollars in political spending from the November ballot.

The new law will allow Uber to reduce its liability in crashes while subjecting the company to new rules regarding background checks for its drivers.

Uber and the Consumer Attorneys of California had qualified competing measures for the ballot but struck an agreement that lets them avoid an expensive fight — each side had either raised or allocated more than $75 million for their campaigns — over liability around ride-hailing. Uber wanted to limit attorney contingency fees in medical recoveries for all California crashes; the attorney group wanted to increase Uber’s liability for sexual misconduct.

The compromise, Senate Bill 623, notably applies to crashes involving ride-hailing services only — not all crashes on the state’s roads as Uber’s measure had proposed. It won’t cap attorney fees but will limit how much plaintiffs can recover for medical costs for treatment from lien-based providers. Medical liens let crash victims start treatment without paying upfront while their case is pending; the law would also prohibit the sale of such liens. In addition, lawyers will be prohibited from referring clients to medical providers with whom they have close ties.

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