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NYC taxi owners lose court battle over Uber, Lyft expansion
By
Jon Campbell
Published Apr 27, 2023
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Photo by Ryan Rahman/Pacific Press/LightRocket via Getty Images
By
Jon Campbell
Published Apr 27, 2023
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Yellow cab owners can't sue New York City after the value of their taxi medallions dropped following an expansion of ride-share apps like Uber and Lyft, according to the state's top court.
A group of yellow cab owners has spent years trying to sue the city for failing to act in “good faith” when auctioning off medallions — permits that allow taxis to operate — in 2013, just as app-based ride-sharing services started to take off in the city.
But the state Court of Appeals unanimously ruled against the cab owners on Thursday. The court found the city was under no obligation to keep in place any rules limiting the ride-sharing, even after the medallion sale.
In a statement, Nick Paolucci, a spokesperson for the city’s Law Department, said the court’s ruling “rightly recognized” the taxi owners couldn’t sue.
“We’re gratified that the state’s highest court has put to bed the claims of taxi medallion purchasers that the city was required to preserve the value of their medallions by thwarting ride-hailing apps’ growth-at-any-cost business strategy,” said Paolucci.
An attorney for the taxi owners did not immediately respond to a request for comment.
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Jon Campbell
Jon Campbell covers the New York State Capitol for WNYC and Gothamist. Prior to that, he covered the Capitol for more than a decade for the USA TODAY Network. He has twice earned the Walter T. Brown Memorial Award, an honor given annually by the Legislative Correspondents Association alumni for outstanding state government coverage. Jon grew up in the Buffalo area and graduated from the University at Albany. Got a tip? Email Jon at [email protected] or Signal at JonCampbellNY.90.
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