FOLLOW US

Mon

August 24, 2026

America June 5, 2024 6 mins read

Cali. Supreme Court Weighs in on Fraudulent Concealment Claims in Uber Case

America ı By Rochdi Rais

0 Comments

viktor-avdeev-Gk3apXDUZiI-unsplash

Barring fraudulent concealment claims under the so-called economic loss doctrine would create "perverse incentives" for people to draw others into contracts and "have their way with them," the California Supreme Court was told Tuesday by counsel for an Argentinian attorney suing Uber on allegations it hid crucial information from him.

Cindy Tobisman of Greines Martin Stein & Richland LLP appeared before the state's highest court as it seeks to answer a certified question from the Ninth Circuit that is central to her client Michael Rattagan's claims against Uber Technologies Inc.

Rattagan alleges Uber fraudulently concealed information from him when he represented their subsidiaries during a problem-filled launch in Buenos Aires, leading to him being arrested and vilified in the media.

Not allowing fraudulent concealment claims like his to go forward because of the economic loss doctrine — which prevents a party in a contract from recovering for economic losses in tort unless the party can show there was harm beyond a broken contractual promise — would give cover for parties to trick others into a contract or to misbehave during the execution of the contract, Tobisman said.

"There's nothing about [the doctrine] that we would want to shield people who commit fraud just because there's a contract in the mix," Tobisman said. "And in fact it would create some kind of perverse incentives for people to draw somebody into a contractual relationship because then they could have their way with them."

Tobisman said Uber agrees that if fraudulent concealment induces a contract, a claim would not fall outside the economic loss doctrine. But she also argued that concealment could still occur during the execution of a contract.

A key ruling on the economic loss doctrine, the high court's 2004 opinion in Robinson Helicopter v. Dana, held that fraudulent inducement is not barred under the economic loss doctrine but didn't "expressly state that this exception applies to both concealment and to misrepresentation," Rattagan said in a brief to the court, which also said the Ninth Circuit question didn't specify concealment before or during a contract, so the high court should answer both.

Tobisman later in the hearing argued that in her client's case, the fraudulent concealment occurred during the contract, but that Uber's wrong behavior toward her client is "frankly totally separate from the contract. I think the obligation not to set somebody up as your fall guy and your lighting rod, which is what happened to Mr. Rattagan, is an obligation that exists so far outside the realm of —"

Justice Martin L. Jenkins cut Tobisman off and said, "But it arises in the context of a contract."

"It arises during the performance of a contract in that these two people are in a contractual relationship, but it's independently wrongful in the sense that there's an intentionality," Tobisman said. "I mean, the whole idea of fraud is that it's conduct that you have set out to draw somebody into a situation where if you gave them that material piece of information they could have protected themselves."

Rattagan first sued in 2019 and twice amended his complaint, seeking to hold Uber liable for fraudulent concealment, negligence, breach of the implied covenant of good faith and fair dealing, and aiding and abetting fraudulent concealment over what he called the company's "recklessly orchestrated" entry into the Argentine capital.

Rattagan, one of the founding partners of Rattagan Macchiavello Arocena who previously served as co-head of the firm's mergers and acquisitions group and its natural resources and energy group, says that he began working for two of Uber's Dutch subsidiaries in 2013 to lay the groundwork for a Buenos Aires launch, which included getting the process started for registering Uber's Argentina subsidiary, having Rattagan listed as the legal representative and using his law firm as Uber's legal domicile ahead of an eventual launch in the city.

But over the next couple of years, Uber kept much of its actual launch plans secret from him, including that it had hired alternate counsel in the country, that it planned to launch despite an incomplete corporate registration and that it planned to refuse to comply with local authorities, Rattagan alleges.

After Uber launched in Buenos Aires, local officials and taxicab unions became incensed and staged protests outside Rattagan's law firm, the media vilified him and his firm, and Argentine authorities raided his office and charged him with crimes including tax evasion, he says.

U.S. District Judge Edward Chen dismissed Rattagan's suit in August 2020. Rattagan appealed to the Ninth Circuit, challenging Judge Chen's determination that Rattagan's fraudulent concealment claims were barred by the economic loss rule since they stemmed from Rattagan's stance that he was in an attorney-client relationship with Uber.

The district court also tossed the negligence and breach of the implied covenant claims as time-barred since they were filed after the two-year statute of limitations had run out. Rattagan did not appeal those rulings.

In 2021, the Ninth Circuit asked the California Supreme Court to answer its question on fraudulent concealment, and the court agreed to tackle the issue in February 2022.

Uber maintained throughout the litigation that its operations in Buenos Aires have always been legal and that all of Rattagan's claimed injuries stemmed from Argentine governmental authorities, the media and local trade unions.

Jeffrey M. Davidson of Covington & Burling LLP, who represents Uber, argued in Tuesday's hearing that Rattagan is simply looking to extend the economic loss rule exemptions because his other claims were time-barred.

"The economic loss rule is built to prevent exactly those types of efforts to stamp a tort label on conduct that's properly addressed by contract law," he said.

Rattagan is represented by Cindy Tobisman of Greines Martin Stein & Richland LLP.

Uber is represented by Jeffrey M. Davidson of Covington & Burling LLP.

The case is Michael R. Rattagan v. Uber Technologies Inc., case number S272113, in the Supreme Court of the State of California.

The Ninth Circuit case is Michael Rattagan v. Uber Technologies Inc., case number 20-16796, in the U.S. Court of Appeals for the Ninth Circuit.

Previous Article

NCR Faces Uphill Battle in Federal Circuit Appeal Over $13M Patent Verdict

Read More
2770 Posts

Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America August 21, 2026
Publix Blueberry Recall Escalates to FDA’s Highest Danger Rating
By – Rihem Akkouche
Breaking News August 21, 2026
Tyler Duckworth, ‘The Challenge’ Champion, Dies…

 The two-time MTV winner had been in front of an…

By – Ramzi Salem
High Profile Court Cases August 21, 2026
Alex Jones’ $45M Punitive Award Cut…

AUSTIN, Texas — The Texas Third Court of Appeals cut…

By – Michallie Harrison
High Profile Court Cases August 21, 2026
Pawleys Island School Closes After Sex-Offender…

PAWLEYS ISLAND, S.C. — Pawleys Island Christian Academy has closed…

By – Michallie Harrison
America August 21, 2026
Eric Swalwell Faces FBI Search as…

WASHINGTON — Former congressman Eric Swalwell is facing an escalation…

By – Jackie Allen
High Profile Court Cases August 20, 2026
Austin Metcalf’s Racist History Kept From…

MCKINNEY, Texas — Jurors who rejected Karmelo Anthony’s self-defense claim…

By – Michallie Harrison
America August 20, 2026
Ilja Dragunov Departs From WWE, Closing…

A wrestler once billed as “the Mad Dragon” has slipped…

By – Rihem Akkouche
America August 20, 2026
Ilja Dragunov Departs From WWE, Closing…

A wrestler once billed as “the Mad Dragon” has slipped…

By – Rihem Akkouche
America August 20, 2026
Comcast $117.5M Settlement Clears Final Hurdle…

A data breach that touched more than 31 million lives…

By – Rihem Akkouche
America August 20, 2026
Mitsubishi Electric to Acquire PCI Energy…

Mitsubishi Electric Corp. just planted a much bigger flag in…

By – Rihem Akkouche
America August 20, 2026
ISIS New York Capitol Attack Plot…

A plan authorities describe as both deliberate and deeply dangerous…

By – Rihem Akkouche
America August 20, 2026
KKR’s $9B UGI Bid Headlines a…

Wall Street’s rumor mill never really sleeps, but this week…

By – Rihem Akkouche
America August 20, 2026
Slayer’s Law Blocks Nick Reiner From…

The Slayer’s Law more commonly called a “slayer statute,” has…

By – Jackie Allen
America August 20, 2026
Slayer’s Law Blocks Nick Reiner From…

The Slayer’s Law more commonly called a “slayer statute,” has…

By – Jackie Allen
America August 20, 2026
Bitcoin Twins See Bitcoin’s $65,000 Level…

The Bitcoin Twins, Cameron and Tyler Winklevoss, are once again…

By – Jackie Allen
America August 19, 2026
Hayden Panettiere Death Investigation Heats Up…

 Police Seek Answers in Panettiere’s Final Hours A Death Investigation…

By – Jackie Allen
America August 18, 2026
Hayden Panettiere Remembered for her Acting…

Hayden Panettiere, the former child star who became internationally known…

By – Jackie Allen
America August 18, 2026
Penn State Cocaine Ring Used Pledges,…

HARRISBURG, Pa. — Fourteen people face charges in an alleged…

By – Michallie Harrison
America August 18, 2026
Homewrecker Lawsuit Puts North Carolina’s Rare…

Former Sen. Kyrsten Sinema is at the center of a…

By – Jackie Allen
America August 20, 2026
Robin Williams’ Children Reactivate His Instagram…

Inside This Report Zak, Zelda, and Cody Williams have relaunched…

By – Samuel Lopez
America August 19, 2026
Christian Metal Band Demon Hunter Declares…

INSIDE THIS REPORT Christian metal band Demon Hunter has sued…

By – Samuel Lopez
America August 19, 2026
Judge Removed After Saying Jury “Got…

INSIDE THIS REPORT A visiting judge removed Judge John Roach…

By – Samuel Lopez
America August 19, 2026
Did the Government Just Admit It…

INSIDE THIS REPORT Avi Loeb says government sources asked him…

By – Samuel Lopez
America August 19, 2026
Eight Years After Elon Musk Shot…

Key Takeaways Elon Musk’s Tesla Roadster has been traveling through…

By – Samuel Lopez
America August 19, 2026
A Near-Total “Blood Moon” Will Light…

Key Facts A deep partial lunar eclipse will be visible…

By – Samuel Lopez
America August 16, 2026
Perez Hilton’s Mother Seeks Temporary Custody…

By Samuel López | USA Herald Perez Hilton’s family has…

By – Samuel Lopez
America August 13, 2026
Taylor Farms Jalapeño Recall Salmonella Scare…

A single shipment of peppers has set off a chain…

By – Rihem Akkouche
America August 12, 2026
Heat Dome Brings Dangerous Temperatures Across…

A powerful Heat dome is expanding across the United States,…

By – Jackie Allen
America August 8, 2026
Joe Biden: Hunter Says the Prostate…

Former President Joe Biden is experiencing a worsening battle with…

By – Jackie Allen
America August 1, 2026
Stormed the Border: Spain Says 25,000…

CEUTA, Spain (AP) — Spanish authorities say thousands of migrants…

By – Jackie Allen
Breaking News July 29, 2026
Trump Ends Medicare Part D Subsidy,…

The Trump administration is ending a Medicare Part D subsidy…

By – Michallie Harrison
America August 17, 2026
Von Miller Cowboys Contract Brings Future…

Some homecomings happen quietly. This one came with a social…

By – Rihem Akkouche
America August 14, 2026
White House Denies Role in Josh…

LOS ANGELES — The White House is denying any role…

By – Michallie Harrison
America August 13, 2026
Prichard Colon Death: Once-Unbeaten Boxer Dies…

Prichard Colon never threw another punch after that October night…

By – Rihem Akkouche
America August 13, 2026
Tiger Woods and Nike: 27-Year Partnership…

Tiger Woods built one of the most lucrative athlete-brand partnerships…

By – Jackie Allen
America August 12, 2026
209 Triple-Doubles, Two Offers Declined: Russell…

There were two NBA teams ready to hand Russell Westbrook…

By – Rihem Akkouche
America August 11, 2026
Part 2. Archbald Faces Big Expansion…

In Archbald, Pennsylvania, a community of roughly 7,000 residents, the…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter