(Bloomberg) -- Uber Technologies Inc. lost its bid to freeze a lawsuit bound fortrial over California drivers’ demands to be treated as employeeswhile the company appeals rulings that dramatically increased thestakes in the case.
|The U.S. Court of Appeals in San Francisco on Wednesday rejectedUber’s request to halt all proceedings in the class action while itseeks an order overturning a judge’s Dec. 9 ruling that added morethan 100,000 drivers to the class action. A trial is set forJune.
|“I think this is a strong statement that the Ninth Circuitbelieves this trial must go forward without delay,” ShannonLiss-Riordan, a lawyer for the drivers, said in a statement. “Weare looking forward to this trial.”
|Theodore Boutrous, a lawyer for Uber, said the company isawaiting a decision from the appeals court on a separate request toreview Chen’s orders on class action certification.
|“If the case moves forward, we’ll look forward to presenting thefacts about how drivers use Uber with complete flexibility andcontrol over their work to a jury in June 2016,” Boutrous said in astatement.
|U.S. District Judge Edward Chen in San Francisco said on Dec. 22he won’t issue a final judgment affecting most drivers in the casefollowing a trial if the challenge to his order hasn’t beenresolved on appeal. The company had asked Chen to put the entirecase on hold while the appeal was pending.
|In his Dec. 9 ruling, Chen concluded the company’s contract withits drivers improperly required them to resolve disputes througharbitration, preventing them from suing.
|In the same decision, he allowed all drivers covered by the caseto seek expense reimbursement, including as much as 57 1/2 centsfor every mile driven. Chen had previously allowed the drivers toseek tips in the case.
|A victory for the drivers seeking the pay and benefits ofemployees rather than independent contractors threatens to upendthe ride share company’s business model and cut into its more than$60 billion valuation. Experts have said the stakes in the lawsuitgrew by hundreds of millions of dollars as a result of the Decemberruling.
|The case is O’Connor v. Uber Technologies Inc.,13-cv-03826, U.S. District Court, Northern District of California(San Francisco).
|Related: Uber pushes new contract on drivers as pay fightescalates
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|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
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