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Sep. 21, 2016

Brian S. Kabateck

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Kabateck Brown Kellner LLP

In a case likely to resonate beyond the ride-sharing business model to the entire gig economy, Kabateck's objections in May to a $100 million proposed settlement between Uber Technologies Inc. and its California and Massachusetts drivers threw the deal into doubt and, in June, persuaded U.S. District Judge Edward M. Chen of San Francisco to withhold approval while questioning whether the sum would compensate the drivers adequately for the claims they were giving up.

Kabateck contended in court papers that the "collusive and disastrous settlement" is nothing less than a $1 billion wage theft from drivers, in part because it does nothing about the contentious classification beef that was at the heart of the case. O'Connor v. Uber Technologies Inc., 3:13-cv-03826 (N.D. Cal., filed Aug. 16, 2013).

"Classification of drivers as independent contractors instead of employees is an important social issue that is at the center of the gig economy," Kabateck said. "The settlement does not resolve these issues. The lead plaintiff, Mr. O'Connor, hired me because he is interested in getting a better deal for drivers."

The case remains unresolved while Kabateck and co-lead objectors' counsel Mark Geragos seek a voice in further negotiations between the plaintiffs' lawyer who negotiated the deal, Shannon Liss-Riordan, and Uber's legal team. "We're trying to bring all parties to the table, not just her," Kabateck said. "So far, no decision." He said that ultimately the courts will have to fashion a test for classifying part-time workers transitioning into employees. "There will be multiple factors," he predicted. "How many hours do they work, how much control does the company exert." Meanwhile, Kabateck represents a separate class of Uber drivers in a related case also before Chen that features employment claims not included in the Liss-Riordan suit. Del Rio v. Uber Technologies Inc., 3:15-cv-03667 (N.D. Cal., filed Aug. 11, 2015).

Operating on the legislative front, Kabateck aided 2,000 Porter Ranch residents who are his clients in litigation against the owners of the defective Aliso Canyon natural gas well by promoting a bill before the state Senate extending legal remedies for people affected by environmental disasters. If the bill, AB 2748, becomes law, it would lengthen the time limit for filing civil actions from two years to three, authorize courts to award attorney fees to winning plaintiffs and bar companies from requiring affected residents to release liability in exchange for partial damages payments. The Consumer Attorneys of California, of which Kabateck is a past president, is a key backer.

Of the leak's effect on his clients, Kabateck said, "There's still a lot of wells that are in operation. At this point, we don't know how many of them are leaking or will leak in the future."

— John Roemer

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