{"id":1207,"date":"2026-06-26T04:00:17","date_gmt":"2026-06-26T04:00:17","guid":{"rendered":"https:\/\/california-relocation-journal.com\/?p=1207"},"modified":"2026-06-26T04:00:17","modified_gmt":"2026-06-26T04:00:17","slug":"newsom-blesses-uber-ballot-measure-truce-but-fight-over-car-crash-lawsuits-continues","status":"publish","type":"post","link":"https:\/\/california-relocation-journal.com\/?p=1207","title":{"rendered":"Newsom blesses Uber ballot measure truce \u2014 but fight over car crash lawsuits continues"},"content":{"rendered":"
\n

Gov. Gavin Newsom signed a law Thursday to crack down on inflated profits stemming from car crash lawsuits, blessing a hard-fought compromise between Uber and the state\u2019s trial attorneys that averts a November showdown between two of California\u2019s most powerful and moneyed lobbying forces.<\/p>\n

Read more Controversial billionaire tax proposal will appear on November ballot<\/a><\/p>\n

The deal, the fruit of months of negotiations, takes aim at the lucrative way doctors can charge for procedures on patients referred to them by personal injury lawyers.<\/p>\n

If a law firm has a client who was hurt in a car accident, the lawyer will often send them to a doctor who will perform surgery on a \u201clien\u201d basis, meaning the doctor will be paid from money that comes from a lawsuit settlement rather than through insurance.<\/p>\n

Uber contends this arrangement has created an incentive for doctors and attorneys to collude to dramatically inflate medical bills. The more expensive the bill, they say, the bigger the resulting payout.<\/p>\n

The law, SB 623, caps how much these doctors can charge when their patient is involved in a lawsuit against a ride-share company, which are frequent targets of litigation due to their top-of-the-line insurance policies. The new law will also require Uber to ramp up background checks of its drivers.<\/p>\n

\u201cWe\u2019re going to have a much safer state both for medical patients and passengers in Ubers,\u201d said Nicholas Rowley, a prominent Texas attorney who helped bankroll the fight and took a leading role in the negotiations.<\/p>\n

The law only applies to cases that involve ride-share accidents that take place after Jan. 1, 2027. <\/p>\n

\u201cThis legislation puts meaningful guardrails in place to better protect accident victims, increase transparency and accountability in the medical lien system and strengthen safety,\u201d said Ramona Prieto, Uber\u2019s head of public policy for the Western U.S., in a statement. <\/p>\n

For months, Uber and lawyers from across the state poured tens of millions into dueling ballot measures that threatened to devastate the profits of whichever side lost.<\/p>\n

Uber fired the first shot with a ballot measure that sought to cap how much attorneys can earn in lawsuits involving auto accidents. The company argued attorneys were swindling their own clients, inflating medical bills of car crash victims to increase the value of the settlement and then pocketing a hefty chunk of the payouts.<\/p>\n

The state\u2019s trial attorneys countered that the fee cap would make small or difficult cases a money-losing endeavor and block scores of accident victims from the courts. They shot back with their own ballot measure that would increase legal liability for ride-share companies if a passenger or driver is sexually assaulted while on a ride, seizing on investigative reporting<\/u> that highlighted assaults in Ubers.<\/p>\n

\u201cThey were waiting for us to blink and we didn\u2019t,\u201d said Douglas Saeltzer, the head of the Consumer Attorneys of California, the lawyer trade group that pushed for the measure against Uber. \u201cTheir starting place, I don\u2019t believe, was in the interest of protecting victims \u2014 it was in the interest of protecting Uber.\u201d<\/p>\n

Read more Trump budget request omits funds for L.A. fire relief, prompting criticism from senators<\/a><\/p>\n

With the passage of Thursday\u2019s law, both sides have agreed to pull their respective measures from the November ballot, halting campaigns that had both parties amassing tens of millions in funding and blanketing the airwaves with ads.<\/p>\n

\u201cNow we can stop seeing all the commercials,\u201d said Assemblymember Blanca Pancheo (D-Downey) at a Tuesday hearing.<\/p>\n

The law, put forward by Assemblymember Diane Papan (D-San Mateo) and Sen. Thomas Umberg (D-Santa Ana), also caps the amount that can be earned by third-party investors who buy out a doctor\u2019s lien in a personal injury case. These companies will purchase a doctor\u2019s stake in the case at a reduced rate, then pocket a share of the payout if the case settles.<\/p>\n

\u201cPrivate equity and hedge funds buy them at a steep discount, then turn around and collect the full inflated amount,\u201d Saeltzer said at a Tuesday hearing on the bill. \u201cThat\u2019s money flowing to Wall Street investors, not patients.\u201d<\/p>\n

The law will require annual background checks for ride-share drivers and expand the list of offenses that disqualify someone from the job.<\/p>\n

In addition to the ballot battle, has Uber sued two of LA\u2019s most well-known personal injury firms \u2014 the Law Offices of Jacob Emrani and Downtown L.A. Law Group \u2014 accusing them of inflating medical bills and forcing clients to undergo needless and expensive surgeries to inflate the value of the claim. The firms asked the judge to dismiss the case Wednesday, arguing Uber had failed to prove fraud. Both firms have vehemently denied wrongdoing.<\/p>\n

The lawsuit, filed last year, has put the plaintiff lawyers in the unusual position of playing defense. Listening in the audience at Wednesday\u2019s hearings were the partners of Downtown L.A. Law Group and Jacob Emrani.<\/p>\n

\u201cLet\u2019s be clear about what this Uber case really is,\u201d said John Hueston,<\/b> outside counsel for Emrani. \u201cIt\u2019s brought by a $150 billion dollar company \u2026 to intimidate the plaintiff\u2019s bar, exhaust its resources and chill the suits that hold Uber accountable.\u201d<\/p>\n

Michael Huston, one of the lawyers who represents Uber, countered that the case is \u201cnot an attack on the plaintiff\u2019s bar.\u201d<\/p>\n

\u201cWe have brought suit against the two in this state \u2026 that are engaged in naked fraud,\u201d he said.<\/p>\n

Read more This California bill is so bad it has me agreeing with a Trump Republican<\/a><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Gov. Gavin Newsom signed legislation Thursday limiting medical billing in ride share accident litigation, averting a November showdown between Uber and the state’s trial attorneys. 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