(USA Herald) — Micromobility, the use of small, lightweight vehicles such as electric bikes and scooters for short trips, has exploded in popularity in recent years. Thanks to the pandemic, inflation, rising oil prices, and increased consumer appreciation for accessible and inexpensive transportation services, such rentals have grown significantly in urban settings. However, with this growth has come an increase in accidents and injuries involving these devices, leading to complex legal issues and questions of liability.
In this article, we’ll take a closer look at the case of State Farm Fire and Casualty Co. v. Rad Power Bikes Inc., and explore the insurance implications of this case and how State Farm’s conduct impacts the public at large.
The Growth of Micromobility
In the last six years, there has been soaring growth in electric bike and electric scooter rentals. As of last summer, dockless bike-share systems served 35 cities, and dockless scooter systems were in 158 cities. This growth has been driven by a number of factors, including the pandemic, inflation, rising oil prices, and increased consumer appreciation for accessible and inexpensive transportation services.
However, with this growth has come an increase in accidents and injuries involving these devices. Safety research and data studies demonstrate a corresponding increase in the number of serious accidents and injuries involving micromobility devices. This has led to complex legal issues and questions of liability.
The Complexities of Liability
When an accident involving a micromobility device occurs, determining who is ultimately responsible can be complex. Lawsuits have asserted claims against vehicle operators, rental companies, municipalities partnering with short-term rental program operators, as well as manufacturers of the vehicles.
Federal regulations regarding safety appear imminent, based on recent events. However, the existing law governing liability for such accidents varies by state. A notice issued on June 6 by the U.S. Consumer Product Safety Commission advises that it will be holding a public meeting on July 27 with experts to discuss safety concerns. Nonetheless, there are some general principles that apply already in most cases.
Liability of the Operator
In evaluating accident liability, the first determination to be made is who the operator of the vehicle was at the time of the accident. In most cases, this is the person who rented the e-bike or scooter.
The operator will likely be held liable, in whole or in part, for any personal injuries or property damage caused to a third party due to their negligence. This could include driver errors or violations of the law; for example, speeding or driving under the influence.
Lawsuits by injured pedestrians, passengers and other vehicle drivers against negligent operators are typically adjudicated or resolved much like motor vehicle accident or bicycle accident cases. However, frequently the vehicle operators are uninsured or underinsured, compelling claimants to seek other sources of recovery.
Liability of the Rental Company
The vehicle rental company may also be liable for damages to a third-party plaintiff — or even to the operator of the e-bike or scooter.
Typically when renting a vehicle from a rental company, the renter signs a user agreement accepting terms of service containing liability protection clauses. These can include assumption of risk, waiver and release of claims, warranty disclaimers and class action waivers.
However, these clauses may not always be enforceable. For example, if a rental company fails to maintain its vehicles properly or fails to provide adequate warnings or instructions for their use, it may still be held liable for damages resulting from an accident.
State Farm Fire and Casualty Co. v. Rad Power Bikes Inc.
One recent case that highlights these complex issues is State Farm Fire and Casualty Co. v. Rad Power Bikes Inc.
State Farm Fire and Casualty Co. v. Rad Power Bikes Inc. is a case filed on October 4, 2022, in the Pennsylvania Eastern District Court. The case was filed by State Farm Fire and Casualty Company against Rad Power Bikes Inc., alleging that one of its electric bikes caused a fire that resulted in significant property damage. The case is still pending and is being overseen by Judge Chad F. Kenney.
This case underscores crucial concerns related to the liability of products and insurance coverage associated with micromobility devices. It additionally illuminates the potential strategies of insurance companies, such as State Farm, in maneuvering to reassign liability onto manufacturers or other involved entities.
Implications for the Public
As more people turn to micromobility devices as a means of transportation it is important that they are aware of potential risks and liabilities associated with their use.
It is also important that insurance companies act in good faith when handling claims related to accidents involving these devices.
In conclusion, the growth of micromobility has brought with it complex legal issues and questions of liability. The case of State Farm Fire and Casualty Co. v. Rad Power Bikes Inc. highlights these issues and the potential consequences for the public at large. It is important that consumers are aware of their rights and take steps to protect themselves. So, be informed, be aware, and stay safe when using micromobility devices.
By Samuel Lopez | Legal News Contributor for USA Herald
For an extended exploration of my legal analysis, read more here. Remember, maintaining a balanced perspective on the dynamics of law and justice helps us understand the intricate workings of our legal system better.
