The American Tort Reform Association (ATRA) expressed support for Texas House Bill 1745, a law enacted during the 88th Legislature that limits rideshare companies’ liability in driver-related incidents by requiring plaintiffs to prove gross negligence with clear and convincing evidence and show the company failed to meet obligations under Chapter 2402 of state law.
This development reshapes how civil claims against rideshare companies are handled in Texas, affecting both riders and transportation network businesses. The law clarifies the circumstances under which these companies can be held accountable for driver-related incidents.
The American Tort Reform Association included information on Texas H.B. 1745 in its reform section dated July 10, 2023, as part of efforts to address civil actions against rideshare services. The legislation applies when the rideshare service is the defendant in a claim for property loss, bodily injury, or death that arises from the use of the service while the driver or passenger is logged into the platform or through the relationship with the driver. The bill creates a framework for such arbitration and civil actions while setting specific conditions for any liability.
Rideshare companies that comply with state driver and insurance requirements under Chapter 2402 of the Occupations Code receive limits on liability exposure. Supporters say this structure has helped maintain service availability for riders across the state.
The Graves Amendment provides federal preemption against state laws imposing vicarious liability on rental car and vehicle leasing companies. Congress is considering expansions to the Graves Amendment in surface transportation legislation that would extend similar protections to rideshare and peer-to-peer car sharing platforms. Such federal preemption would create uniform standards nationwide and prevent inconsistent state-level liability rules that could increase costs for rideshare services and consumers. Several states have already pursued parallel reforms at the local level, according to ATRA.
The American Tort Reform Association works as the leading national organization focused on civil justice system reforms through legislative and educational initiatives. The group supports measures that promote balanced tort laws and reduce unnecessary litigation impacts on businesses and economic activity. Its reform tracking includes protections for industries such as rideshare services that rely on clear liability standards. The association collaborates with policymakers to advance consistent legal frameworks across states and at the federal level, according to the American Tort Reform Association.
