In what could set an unusual precedent for the industry, an insurer is suing the city of Portland over its homeless population.
Mobilitas Insurance Company has initiated legal action against the City of Roses, seeking damages exceeding $1 million related to a fatal collision involving a Lyft driver and a motorcyclist in 2022.
The insurer argued that the tragedy on Southeast Powell Boulevard could have been averted if the city had adhered to its policy regarding the removal of homeless encampments, which allegedly obstructed the driver’s view of oncoming traffic.
A report from Williamette Week notes that the lawsuit, filed in the Multnomah County Circuit Court, presents a unique legal challenge, attributing the accident in part to the city’s negligence in enforcing its regulations against tent setups along major thoroughfares.
This negligence, the lawsuit contends, contributed to the visibility issues that led to the deadly incident on May 14, 2022, at the intersection of Southeast Powell Boulevard and 62nd Avenue — a location noted for recurring homeless camps throughout the year.
Figures from HUD User show that homelessness in the state been on a downward trend, although it is still substantial – a tidbit that may prove influential to the suit.
The collision resulted in the death of 17-year-old motorcyclist Gabriel Almansan at the scene, a detail Mobilitas does not mention in its legal filing. The sedan’s passenger, Daniel Cortez, sustained serious injuries but survived, while the driver, Anderanik Manouki, escaped significant harm.
At the time of the accident, Manouki was operating under the employment of Lyft, making both him and Cortez insured by Mobilitas, a subsidiary of AAA Insurance that covers Lyft drivers.
The lawsuit specifically points to the City of Portland’s alleged failure to address the issue of homeless camping along a known high crash corridor and allowing overgrown vegetation to block drivers’ views at the intersection, thereby increasing the risk of accidents.
It references an emergency declaration by Mayor Ted Wheeler from February 2022, which prohibited homeless encampments near highways, onramps, and designated high crash areas, including Powell Boulevard.
The declaration aimed to protect homeless individuals from traffic-related fatalities, which had been on the rise, although critics argued it would negatively impact the city’s homeless population by forcing them to relocate.
Mobilitas is also a fully-owned subsidiary of CSAA Insurance Group.
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