Lime, Bird, Spin, and other e-scooter rentals cause thousands of injuries annually. Navigate product liability claims, arbitration clauses, municipal liability, and insurance coverage layers to recover compensation for brake failures, battery fires, and defective equipment.
Evidence Preservation Alert: E-scooter companies often retrieve damaged units within hours. Photograph the scooter ID, visible defects, and crash scene immediately. Request a litigation hold letter if you plan to pursue claims.
Legal Framework for E-Scooter Injuries
Product Liability vs. Premises Liability
Product Liability Claims
Strict liability: No need to prove negligence if defect caused injury
Design defects: Inherent flaws in scooter design
Manufacturing defects: Individual unit deviates from design
Warning defects: Inadequate safety instructions
Applies to Lime, Bird, manufacturers, and component suppliers
Premises Liability Claims
Property owner duty: Maintain safe conditions for lawful users
Municipal liability: Cities must maintain roads and sidewalks
Notice requirement: Defendant knew or should have known of hazard
Sovereign immunity: Government claims have special rules
Short deadlines: Often 30-180 days to file government tort claims
E-Scooter Corporate Structure
Company
Legal Entity
Headquarters
Insurance Notes
Lime
Neutron Holdings, Inc.
San Francisco, CA
$5M+ commercial general liability typical
Bird
Bird Rides, Inc. (filed bankruptcy 2023)
Santa Monica, CA
Check current insurance status post-bankruptcy
Spin
Spin (Ford subsidiary, sold to Tier)
San Francisco, CA
Corporate parent may provide additional coverage
Veo
VeoRide, Inc.
Chicago, IL
Standard commercial liability coverage
Arbitration Clauses in User Agreements
Mandatory arbitration: Most e-scooter apps require binding arbitration through AAA or JAMS
Class action waivers: Prevent joining with other injured riders
Opt-out periods: Some agreements allow 30-day opt-out after first ride
Unconscionability challenges: Courts may void one-sided terms, especially for product defects
Small claims exception: Many agreements exempt claims under $10,000
Comparative Negligence by State
Pure Comparative Negligence
CA, NY, FL, and 9 other states: Recover even if 99% at fault (reduced by fault percentage)
Modified Comparative Negligence
TX, IL, OH, and 30+ states: Barred if 50% or 51% at fault (varies by state)
Waiver Limitations: Liability waivers generally cannot cover gross negligence, intentional misconduct, or strict product liability for manufacturing defects. Courts scrutinize whether riders had meaningful opportunity to read and understand terms.
Documentation Requirements
Immediate Scene Documentation
Scooter Evidence
Scooter ID number (usually on handlebar or frame)
QR code and app screenshot showing rental
Brake condition and lever position
Tire wear and inflation status
Visible damage, loose parts, or defects
Battery compartment and charging port
Scene Evidence
Road surface conditions and hazards
Lighting and weather conditions
Traffic signals and signage
Witness contact information
Surveillance cameras in area
GPS coordinates of crash location
Medical Documentation
Emergency room records: Document mechanism of injury and initial diagnosis
Specialist consultations: Orthopedic, neurological, plastic surgery evaluations
Treatment records: Physical therapy, surgery, medication history
Prognosis statements: Future treatment needs and permanent impairment ratings
App and Digital Evidence
Complete ride history from the app (screenshot before data purges)
Rental agreement and terms accepted at sign-up
Any in-app safety warnings or acknowledgments
Support tickets or complaints about the scooter
Credit card statements showing rental charges
Preservation Letter: Send a spoliation/litigation hold letter to the e-scooter company immediately. Request they preserve the specific scooter unit, maintenance records, prior complaint history, and GPS/telemetry data from your ride.
Demand Letter Strategy
Identifying the Right Defendant
Defective scooter: Name the rental company AND manufacturer as defendants
Road hazard: File government tort claim against city/county within deadline
Third-party collision: Pursue at-fault driver's auto insurance first
Multiple causes: Name all potentially liable parties to preserve claims
Key Demand Letter Elements
Incident summary: Date, time, location, scooter ID, and rental details
Liability theory: Product defect, negligent maintenance, or road hazard
Evidence summary: Photos, witnesses, expert opinions on defect
Injury documentation: Medical treatment, ongoing care needs, prognosis
Damages calculation: Medical bills, lost wages, pain and suffering
Demand amount: Specific figure with deadline for response
Arbitration acknowledgment: Note willingness to proceed through required forum
Insurance Coverage Layers
Coverage Type
Typical Limits
When It Applies
E-scooter company CGL
$1M-$5M per occurrence
Product defects, negligent maintenance
Your health insurance
Policy limits
Initial medical treatment (subrogation rights)
At-fault driver's auto
$25K-$250K+ BI
Third-party vehicle collisions
Your UM/UIM coverage
Policy limits
Hit-and-run or uninsured driver
Municipal liability
$100K-$1M (caps vary)
Road defects after government claim filed
Negotiation Tip: E-scooter companies often settle quickly to avoid publicity and regulatory scrutiny. Document everything thoroughly and be prepared to pursue arbitration if initial offers are inadequate.
Sample E-Scooter Injury Demand Letter
[Date]
Via Certified Mail and Email
Claims Department
Neutron Holdings, Inc. (d/b/a Lime)
85 2nd Street, Suite 100
San Francisco, CA 94105
Re: Personal Injury Claim - E-Scooter Brake Failure
Rider: [Client Name]
Incident Date: [Date]
Scooter ID: [Lime Scooter ID Number]
Location: [Street Address, City, State]
Dear Claims Representative:
This firm represents [Client Name] regarding serious injuries sustained on [Date] when a Lime e-scooter experienced complete brake failure at [Location]. We write to demand compensation for medical expenses, lost wages, and pain and suffering resulting from your company's defective product.
FACTS OF THE INCIDENT
On [Date] at approximately [Time], our client rented Lime scooter #[ID] using the Lime mobile application. While traveling at approximately 12 mph on [Street Name], our client applied the hand brake to slow for a pedestrian crossing. The brake lever compressed fully without resistance, and the scooter failed to decelerate. Our client was ejected over the handlebars and struck the pavement.
Photographs taken immediately after the incident show the brake cable was frayed and the brake pads were worn to bare metal. The scooter's last maintenance inspection, which we request you produce, appears to have been inadequate.
LIABILITY ANALYSIS
Lime is strictly liable for injuries caused by defective products under [State] law. The brake system's failure constitutes both a manufacturing defect and evidence of negligent maintenance. Your user agreement's liability waiver does not shield Lime from strict product liability claims or gross negligence in maintaining safety-critical components.
We acknowledge the arbitration provision in Lime's terms of service and are prepared to proceed through AAA Commercial Arbitration if we cannot reach a reasonable settlement.
INJURIES AND DAMAGES
Our client sustained the following documented injuries:
- Displaced radial head fracture requiring open reduction internal fixation surgery
- Facial lacerations requiring 22 sutures and resulting in permanent scarring
- Grade II concussion with persistent post-concussive symptoms
- Extensive road rash to bilateral upper extremities
Current medical expenses total $87,432.16, with an additional $25,000-$40,000 in anticipated future treatment including hardware removal surgery and scar revision procedures. Our client, a [Occupation], has missed [X] weeks of work with lost wages of $[Amount].
DEMAND
Based on the severity of injuries, clear liability, and ongoing treatment needs, we demand the total sum of $[Amount] to resolve all claims. This figure accounts for:
- Past medical expenses: $87,432.16
- Future medical expenses: $35,000 (estimated)
- Lost wages to date: $[Amount]
- Future lost earning capacity: $[Amount]
- Pain, suffering, and permanent disfigurement: $[Amount]
Please respond within thirty (30) days with your settlement position. If we cannot reach agreement, we will file for arbitration and pursue all available remedies.
We also request you preserve the subject scooter, all maintenance and inspection records, GPS/telemetry data from the incident ride, and any prior complaints regarding brake issues on Lime scooters.
Sincerely,
[Attorney Name]
Attorney for [Client Name]
[Law Firm]
[Address]
[Phone]
[Email]
Enclosures:
- Medical records and billing statements
- Incident photographs
- Police report (if applicable)
- Lost wage documentation
Yes. Acknowledging the arbitration requirement shows you understand the process and are prepared to proceed. It can encourage settlement since companies know you will actually pursue the claim through the required forum.
Bird's 2023 bankruptcy complicates claims but does not eliminate them. Check whether Bird maintained insurance policies that survive bankruptcy. Claims may need to be filed with the bankruptcy court. Consult an attorney familiar with bankruptcy claims procedures.
Attorney Services & Contact
E-Scooter Injury Representation
I represent riders injured by defective e-scooters, negligent maintenance, and dangerous road conditions. My practice handles claims against Lime, Bird, Spin, and municipal entities.
Email owner@terms.law or use Calendly for a paid strategy session.