SAN FRANCISCO — Uber’s losing streak before U.S. District Judge Edward Chen continued on Tuesday, as the judge rejected the company’s arbitration agreement with its drivers as unfair and one-sided.
In a 70-page decision, Chen denied Uber Technologies Inc.’s bid to enforce the arbitration clause in a pair of lawsuits on behalf of drivers who claim the company terminated their accounts as a result of illegal background checks. Although Chen found that the plaintiffs in both cases agreed to the terms of Uber’s driver contract, he found the arbitration provision “unconscionable” and therefore unenforceable under California law.
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