Uber wants to cap what California lawyers can earn from car crash cases

Trial Attorneys Are Fighting Back

Uber is collecting signatures for a ballot measure that could reshape how car accident lawsuits work in California.

The rideshare giant wants to cap attorney fees at 25% in all vehicle collision cases, down from the 33% to 40% that personal injury lawyers typically charge. Uber says the change will let victims keep more of their settlement money.

Lawyers say it will destroy their ability to take cases and leave injured people with no one to fight for them.

Both sides have poured tens of millions into the battle, and the outcome could influence injury law far beyond California.

The Initiative Caps Fees at 25%

Uber filed its ballot measure on October 3, 2025, under the name “Protecting Automobile Accident Victims from Attorney Self-Dealing Act.”

The initiative would require car crash victims to receive at least 75% of any settlement or court award. It would also tie medical expense recovery to Medicare and Medi-Cal rates rather than what doctors actually charge. And it would ban referral agreements between personal injury law firms and medical providers.

The measure needs approximately 547,000 valid signatures to qualify for the November 2026 ballot as an initiated state statute. (Note: If this is filed as a constitutional amendment, the threshold rises to approximately 875,000.)

Lawyers Call It a Trojan Horse

Personal injury attorneys across California have condemned the proposal.

Nicholas Rowley, one of the lawyers leading the opposition, called the measure “designed to wipe out ordinary working people’s ability to get representation.” Attorneys take cases on contingency, meaning they only get paid if they win. If fees drop to 25% and lawyers must also cover medical costs upfront, many say the math simply stops working. Small claims would become impossible to pursue.

Uber disputes this, saying the measure targets “shady billboard lawyers whose business model relies on abusing auto accident victims for their own personal gain.” The company’s head of public policy, Adam Blinick, said: “Californians deserve a system that prioritizes victims over billboard lawyers.”

Sweet James Leads the Opposition

The names on California’s freeway billboards are fighting back.

Attorneys from Sweet James and Jacoby & Meyers have given nearly $1 million to a committee opposing the ballot measure, according to campaign filings.

Dozens of other personal injury lawyers have joined the effort. Together, they have raised more than $50 million to defeat Uber’s initiative—a figure that continues to climb.

The battle marks one of the most expensive fights between trial lawyers and a single corporation in California history.

Uber Put $12 Million Into Its Campaign

The rideshare company deposited $12 million into its campaign account after filing the initiative.

Uber claims the current system allows predatory attorneys to inflate medical bills for their own profit while victims end up with minimal payouts.

The company has launched a national ad campaign highlighting what it calls lawsuit abuse, running digital spots in California and three other states.

Signature gatherers are now stationed outside grocery stores and DMV offices across the state.

The Medical Bill Question Has No Clear Answer

Both sides disagree on who would pay for medical treatment under the new rules.

Attorneys say the fee structure would force them to cover clients’ medical bills out of pocket before taking their percentage. That could leave lawyers with nothing after a case settles.

A doctor-led political action committee has raised over $4 million to fight the initiative, arguing it will prevent Californians from getting treatment.

Uber Sued LA Law Firms for Racketeering

The ballot measure is just one part of Uber’s legal offensive.

In July 2025, the company filed a federal racketeering lawsuit against Downtown LA Law Group, the Law Offices of Jacob Emrani, and a spinal surgeon named Dr. Greg Khounganian. Uber accused them of running a scheme to inflate medical bills and extract large settlements.

The lawsuit was Uber’s third racketeering case of 2025, following similar filings in New York and Miami. Uber has since filed a fourth RICO lawsuit in Pennsylvania.

Downtown LA Law Group called the complaint “a calculated attempt by a trillion-dollar corporation to suppress legitimate injury claims.” Dr. Khounganian called the lawsuit “completely baseless and unwarranted” and “a political hit piece,” adding that Uber “seems more interested in cutting costs at the expense of injured people’s health.”

One Claimant Got $550,000 in Surgery

Uber’s California lawsuit includes specific examples it calls evidence of fraud.

One person was involved in a minor crash where police determined no one was injured. According to Uber, the Emrani firm referred the claimant to Dr. Khounganian, who then performed a cervical fusion and back surgery costing $550,000.

Uber says independent medical experts indicated the care was unnecessary and billed at up to ten times the market rate.

LA Fares Included Up to 45% for Insurance

Uber says the lawsuits and ballot measure are responses to out-of-control insurance costs.

In Los Angeles County, the company claimed up to 45% of every rideshare fare went to government-mandated insurance as of May 2025. Statewide, the figure was about 32%.

Uber blamed California’s requirement that rideshare companies carry $1 million in uninsured and underinsured motorist coverage—a limit far higher than what taxis, buses, or personal vehicles must carry.

The company says these rules made it a target for inflated claims.

California Reduced Rideshare UM/UIM Coverage in 2026

Governor Gavin Newsom signed Senate Bill 371 on October 3, 2025, and the law took effect on January 1, 2026.

It reduced required rideshare uninsured/underinsured motorist coverage from $1 million per incident to $300,000, with a $60,000 limit per person. Uber supported the legislation, arguing it would lower fares for riders.

Critics say the change shifts risk to injured passengers who may now struggle to recover their full medical costs.

Note: The $1 million liability coverage for accidents caused by rideshare drivers remains unchanged.

Trial Lawyers Filed Three Counter-Measures

Consumer Attorneys of California, a powerful trade group representing trial lawyers, is pushing back with its own ballot initiatives.

One would prohibit new state laws that interfere with the right to contract with an attorney. Another would expand rideshare companies’ liability for passenger injuries, including sexual misconduct by drivers. A third would impose duties on rideshare companies related to sexual misconduct.

Billboards have also appeared across Los Angeles highlighting investigations into sexual assaults by Uber drivers.

Newsom Wants Legal System Reforms

Governor Newsom has tried to balance both sides.

A spokesperson for his office said: “Our legal system is meant to provide justice, transparency, and accountability — not a business model that uses survivors of abuse or trauma as a revenue stream.” He signed SB 371 to benefit Uber while also calling for standing with accident victims.

Los Angeles County’s interim chief executive, Joseph Nicchitta, has urged the State Bar to implement ethical reforms that would make large personal injury cases less profitable for attorneys.

Even some lawyers admit their industry could do a better job policing itself.

California Could Influence Other States

Legal experts are watching the November 2026 vote closely because California often leads the country on policy changes.

If voters pass Uber’s measure, similar initiatives could be attempted in other states where personal injury lawyers depend on contingency fees.

However, Uber’s efforts have met resistance elsewhere. In Nevada, the state Supreme Court unanimously blocked Uber’s proposed contingency fee cap in early 2025, ruling the measure was “misleading and confusing.” A compromise bill was later passed instead.

What started as a fight over California car crashes could still end up influencing how injured Americans get legal help—though outcomes in other states remain uncertain

This article was created with AI assistance and human editing.

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