The American Tort Reform Association (ATRA) on July 10 expressed support for Texas H.B. 1745, a law enacted during the 88th Legislature that limits vicarious liability for rideshare services provided by transportation network companies. The legislation establishes that a rideshare service cannot be held vicariously liable for damages unless the plaintiff proves gross negligence by clear and convincing evidence and the company has fulfilled all obligations with respect to the driver under state law Chapter 2402.
This development is significant as it addresses how civil actions against rideshare services are handled, potentially affecting both consumers and businesses involved in such claims. The bill creates a framework for arbitration and civil actions while setting specific conditions for any liability, according to the American Tort Reform Association.
The law also requires plaintiffs to submit an affidavit detailing specific theories of recovery and an expert affidavit confirming that damages exceed mandated insurance coverage. Rideshare companies that comply with state driver and insurance requirements under Chapter 2402 of the Occupations Code face limited liability exposure, an approach that has helped maintain service availability for riders across the state, according to ATRA.
Federal law already limits vicarious liability for certain vehicle owners through the Graves Amendment, which bars states from holding rental car and leasing companies responsible for harm caused by drivers. Lawmakers in Congress are now weighing whether to extend similar protections to rideshare and peer-to-peer car-sharing platforms as part of broader surface transportation legislation. Supporters say a federal standard could reduce regulatory differences across states and help control costs tied to liability claims, according to ATRA.
The American Tort Reform Association works as a national organization focused on civil justice system reforms through legislative and educational initiatives. Its reform tracking includes protections for industries such as rideshare services that rely on clear liability standards.
