''Uber Technologies Inc v Heller'', 2020 SCC 16, is a 2020 decision of the Supreme Court of Canada. The Court held 8–1 that an

arbitration clause An arbitration clause is a clause in a contract that requires the parties to resolve their disputes through an arbitration process. Although such a clause may or may not specify that arbitration occur within a specific jurisdiction, it always bind ...

in a

contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...

the

plaintiff A plaintiff ( Π in legal shorthand) is the party who initiates a lawsuit (also known as an ''action'') before a court. By doing so, the plaintiff seeks a legal remedy. If this search is successful, the court will issue judgment in favor of t ...

David Heller had signed with

Uber Uber Technologies, Inc. (Uber), based in San Francisco, provides mobility as a service, ride-hailing (allowing users to book a car and driver to transport them in a way similar to a taxi), food delivery (Uber Eats and Postmates), packa ...

was unconscionable, and hence unenforceable. As a result, it held that Heller's proposed

class action A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class actio ...

lawsuit against Uber could go forward.

Facts

David Heller, an

Uber Eats Uber Eats is an online food ordering and delivery platform launched by Uber in 2014. Meals are delivered by couriers using cars, scooters, bikes, or on foot. It is operational in over 6,000 cities across 45 countries as of 2021. The process of ...

driver, claimed the right to be paid the minimum wage of CA$14 an hour, overtime and vacation pay under Ontario's

Employment Standards Act The ''Employment Standards Act, 2000'' (the Act) is an Act of the Legislative Assembly of Ontario. The Act regulates employment in the province of Ontario, including wages, maximum work hours, overtime, vacation, and leaves of absence. It diffe ...

along with other colleagues in a

. To have these rights, Heller and others needed to be classified as "employees". Heller had a standard form contract with Uber, which stated that he was an independent contractor, and that any dispute needed to go to arbitration in the

Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...

, according to the rules of the

International Chamber of Commerce The International Chamber of Commerce (ICC; French: ''Chambre de commerce internationale'') is the largest, most representative business organization in the world. Its over 45 million members in over 100 countries have interests spanning every sec ...

. This would have cost around US$14,500. The claims of the class as a whole totalled approximately . Heller argued that the arbitration clause was not binding, and voidable because it was unconscionable based on the unequal bargaining power between him and other drivers and Uber. Uber contended that its contract should be enforced, no matter what its terms.

Judgment

Lower courts

Uber brought a motion to

stay Stay may refer to: Places * Stay, Kentucky, an unincorporated community in the US Law * Stay of execution, a ruling to temporarily suspend the enforcement of a court judgment * Stay of proceedings, a ruling halting further legal process in a tri ...

Heller's class action pending resolution of arbitration in the Netherlands. The Ontario Superior Court of Justice, the court of first instance in the action, granted the stay. The Court of Appeal for Ontario reversed the motion judge's decision, holding that the contract which purported to require arbitration was unconscionable. According to Peter Quon, the Court of Appeal's decision was the first in which a Canadian court had found an arbitration clause unconscionable.

Supreme Court

In an 8–1 decision, the Supreme Court of Canada held that the arbitration clause in Heller's contract with Uber was unconscionable. Further, the majority held that the contract was

void Void may refer to: Science, engineering, and technology * Void (astronomy), the spaces between galaxy filaments that contain no galaxies * Void (composites), a pore that remains unoccupied in a composite material * Void, synonym for vacuum, a ...

because it attempted to contract out of the ''Employment Standards Act''. As a result, the Court allowed Heller's

lawsuit against Uber to proceed to trial. Justice Russell Brown, in a

concurring opinion In law, a concurring opinion is in certain legal systems a written opinion by one or more judges of a court which agrees with the decision made by the majority of the court, but states different (or additional) reasons as the basis for their deci ...

, argued that the arbitration clause was unenforceable because it effectively denied Heller access to justice and was therefore contrary to public policy. ''Uber Technologies'' did not settle the question of whether Heller and other members of the proposed class were in fact employees. Rather, it established only that the arbitration clause in Heller's contract with Uber was unenforceable in Ontario, and that Heller could pursue his complaint against Uber in Ontario courts.

Significance

Uber reacted by saying it would amend its contracts to align with the court’s principles, and that: “Going forward, dispute resolution will be more accessible to drivers, bringing Uber Canada closer in line with other jurisdictions". According to Michael Geist, a professor at the

University of Ottawa Faculty of Law The University of Ottawa Faculty of Law (''French: Faculté de droit de l'Université d'Ottawa)'' is the law school at the University of Ottawa, located in Ottawa, Ontario, Canada. Established in 1953, the Faculty is today divided into Civil Law a ...

, ''Uber Technologies'' will influence the use of arbitration clauses in online contracts generally. Professor Jassmine Girgis of the

University of Calgary Faculty of Law The University of Calgary Faculty of Law, at the University of Calgary (U of C). is a law school in Calgary, Alberta. The U of C Faculty of Law has approximately 31 full-time faculty and 300 students in the JD program. With 130 first year spots ...

argued that the version of the doctrine of unconscionability adopted in ''Uber Technologies'' is too expansive, and does not provide sufficient guidance to lower courts. Professor Alan Bogg of the

University of Bristol , mottoeng = earningpromotes one's innate power (from Horace, ''Ode 4.4'') , established = 1595 – Merchant Venturers School1876 – University College, Bristol1909 – received royal charter , type ...

, calling ''Uber Technologies'' a "momentous victory" for Heller, suggested that the decision "represents a powerful countermovement against the use of arbitration clauses in employment contracts". Assistant Professor Tamar Meshel of the

University of Alberta Faculty of Law The University of Alberta Faculty of Law is the graduate school of law of the University of Alberta in Edmonton, Alberta, Canada. Established as an undergraduate faculty in 1912 it is the third oldest law school in Canada, and often considered th ...

argued that the decision may have implications "for arbitration agreements contained in international contracts—particularly standard form contracts—that might give rise to employment disputes, such as those in the gig economy, or that contain terms that may seem to bar a party’s access to the arbitral process".

Notes

External links

* * *{{Cite CanLII, court=scc, year=2020, num=16, litigants=Uber Technologies Inc v Heller Labour law Arbitration cases Canadian contract case law 2020 in Canadian case law