Firm Scores Unanimous Appellate Win for American Arbitration Association Over Uber

July 12, 2022 – In a crucial victory for our client the American Arbitration Association (AAA), HHR helped secure denial of Uber's motion for preliminary injunctive relief in its bid to block the AAA from charging nearly $92 million in arbitration fees.

On April 14, a four-judge panel of New York's Appellate Division, First Department ruled that the ride-sharing platform should pay after it could not demonstrate how it would be successful in pursuing claims of breach of contract, fair dealing, unjust enrichment and unfair competition in violation of California's Unfair Competition Law.

“Uber failed to demonstrate AAA breached any agreed upon terms by failing to charge fees commensurate with its reasonable, actual costs," the panel wrote. “While Uber is trying to avoid paying the arbitration fees associated with 31,000 nearly identical cases, it made the business decision to preclude class, collective, or representative claims in its arbitration agreement with its consumers, and AAA's fees are directly attributable to that decision."

The decision affirms the ruling of the Commercial Division of the New York Supreme Court in October 2021 that denied Uber's motion for a preliminary injunction seeking to suspend AAA's invoice to Uber for administrative costs associated with 7,771 arbitration cases.

Uber commenced its lawsuit after law firm Consovoy McCarthy brought more than 31,000 demands for arbitration on behalf of Uber Eats customers alleging “reverse discrimination" arising from Uber's efforts to support Black-owned restaurants following the police killing of George Floyd in May 2020.

Law360 and Reuters reported on the decision.

Dan Weiner, John Townsend and alum Jack Kilgard represented AAA on the matter.