Dulberg v. Uber Technologies, Inc.

Background

Martin Dulberg brought a breach-of-contract class action for Uber drivers against Uber Technologies, Inc., and Rasier, LLC. He alleged that Uber’s late-2016 policy breached its contract with drivers because Uber charged passengers based on estimated time and distance before rides but paid drivers based on actual time and distance, keeping the difference.

The court had certified a nationwide class of people who drove for UberX or UberSELECT, opted out of arbitration, transported passengers charged an upfront fare before May 22, 2017, and earned less because their compensation was calculated using actual rather than estimated time and distance. The parties initially proposed a $345,622 settlement, but the court rejected that proposal after finding that many class members would receive very small amounts. The parties then revised the settlement so that each participating class member would receive at least $20, increasing the settlement to as much as $395,000. Counsel also limited its fee request to 25 percent of the net settlement amount, and Uber agreed to pay the costs of sending revised notice separately from the settlement fund.

Notice and Settlement Terms

The settlement administrator sent 4,521 notices. Although the administrator initially reported that 34 notices had not been delivered, the court calculated that 133 notices ultimately did not deliver. Thirteen class members opted out, and one class member objected. The court found that the notice adequately explained the settlement, the opportunity to object or participate, and the right to opt out.

The settlement fund began at $345,622, with additional amounts needed to ensure the $20 minimum payment. Expenses, attorney’s fees, and the lead plaintiff’s award would be deducted before distribution. Checks would be mailed within 60 days after final approval, and uncashed funds would be reallocated to the class rather than returned to Uber. The court found the settlement fair, reasonable, and adequate because continued litigation could result in no recovery, would be costly and complex, and might produce a recovery not meaningfully different from the settlement.

Fees, Expenses, and Final Rulings

The court granted final approval of the proposed class settlement and plan of allocation. Class members who received notice and did not opt out or object were bound by the settlement order. The 133 people whose notices were not delivered and the 13 people who opted out were excluded from the settlement and released claims.

The court granted the request for reimbursement of $40,430 in litigation expenses. It also granted the request for $65,569.50 in attorney’s fees, with half payable immediately and half payable after counsel certified that distribution was complete. The court granted in part the request for a $5,000 incentive award, finding that $100 was reasonable and awarding that amount to Martin Dulberg. Judge William Alsup ordered the parties to file a status report about cashed and uncashed checks within 120 days after the initial checks were issued.