Uber battles lawyers, doctors at the polls in California

A multimillion-dollar battle is brewing between Uber and an opposition coalition over a November ballot initiative that could affect every driver on California roadswrites Levi Sumagaysai.

Since last fall, the ride-hailing service has poured $32.5 million into a proposed ballot measure that would cap personal injury attorneys’ fees at 25 percent. The measure will also limit medical damages for everyone car crashes in the state—even ones that don’t involve Uber. The company says that by allowing car accident victims to keep 75 percent of the settlements they receive, less payout money will go to attorneys, who receive an average of about 33 percent of settlements.

• Nathan ClickUber campaign spokesman, in a statement: “Californians deserve a system that prioritizes victims over ambulance lawyers, and that’s exactly what this measure does.”

Critics say capping the fees is a form of price control, and advocacy groups, doctors and other health care providers have raised about $55 million so far to oppose the proposal. If lawyers have little incentive to take on a case, they could be discouraged from helping crash survivors secure compensation — which is Uber’s ultimate goal, the opposition argues.

• Doug Salzerpresident of Consumer Attorneys of California: “Uber wrote it to be broad to prevent victims from finding lawyers.”

In response to Uber’s efforts, advocacy groups have proposed counter-ballot initiatives that would make the company more liable for injuries to passengers and for sexual misconduct against riders or drivers. Another proposal would ban new state laws that restrict people from hiring the lawyers they want.

On a recent earnings call, Uber executives told investors they expect the company’s lower insurance costs to drive revenue growth. Last year, the company did $14 billion. By early February, Uber had collected at least 25 percent of the more than 874,000 signatures it needs to collect by June 8 to qualify for the ballot.

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As part of California’s goal to reduce greenhouse gas emissions, the state aims to install 6 million heat pumps in homes by 2030. These electric, energy-efficient alternatives to gas-fired furnaces can heat homes in the winter but also work as air conditioners in the summer.

But there is a major obstacle that is stopping heat pumps from becoming more widely adopted: Our mind-boggling electricity prices.

As CalMatters’ Ben Christopher and Alejandro Lazo explain, Californians pay some of the highest residential electricity bills in the country. Although a recent study by Harvard University found that heat pumps are likely to reduce utility bills for households in the American South and Pacific Northwest, but the same cannot be said for all of California.

Rather, the data suggest that California’s high residential electricity prices can make switching from a gas furnace to a heat pump a potentially expensive endeavor — especially for counties where homes are larger, winters are colder or electricity is more expensive.

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Let’s dive into some immigration news:

• Conflict in Mexico: Violence erupted Sunday in at least a dozen Mexican states after Mexican security forces killed a top leader of a cartel known as “El Mencho.” As cars and businesses were set on fire, the U.S. Embassy in Mexico told American citizens in nine Mexican states to shelter in place. Some experts say the increased violence could lead to migration north. But a spokesman for U.S. Customs and Border Protection said the agency does not expect any impact on migration. Read more by Wendy Fry of CalMatters.

• Legal defense funds: A number of California cities and local governments are setting aside public funds to help provide legal aid to immigrants as President Donald Trump’s mass deportation campaign continues. Deportation takes place in civil court, and unlike criminal cases, defendants are not entitled to a free court-appointed attorney. Alameda and Santa Clara counties, as well as San Francisco, Richmond and Los Angeles, have set aside additional funds for immigrants or created immigration defense funds. Read more by Renee Bartlett-Weber for CalMatters.

With one in 12 Californians facing homelessness, the state’s Rapid Rehousing Program has helped more than 9,000 students on the brink of homelessness find housing since it launched in 2020. Students in the rehousing program also report higher grades and improved mental health. Read more by Khadeejah Khan of CalMatters’ College Journalism Network.