While Uber recently filed a new lawsuit against the NYC Taxi and Limousine Commission seeking the Court to declare the cap on new for-hire vehicle licenses null and void, I have read their moving papers and they seem woefully inadequate. I have reviewed the NYS electronic case folder and there is no memo of law in support of their position and no arguments in their affidavit in support indicating why the cap should be deemed to be invalid. This is rather unusual. The City will undoubtedly file a motion to dismiss and then Uber will file their Memo of Law at that time. In either event, I would expect more form a firm like Boies, Swiller Flexner.
On a related note, back in February, 2019, Uber filed it initial lawsuit arguing that the cap was illegal as it involves the improper delegation of legislative powers, it violated the home rule provision and the state law pre-empts the ability of the City to cap FHVs. Uber has some decent arguments in this case, but ultimately they are not going to win the unlawful delegation of powers argument. While the seminal Court of Appeals case of Boraeli v. Axelrod is still alive and well, the only time it was actually use to successfully defeat the enactment of a regulation is under the sugary soda ban that was nullified by Judge Milton Tingling, who is now the Clerk of the county of New York. That case involved a regulatory agency making legislative decisions. I the FHV cap case, the city council is the legislative body and they gave the TLC the power to cap. While I dont agree with the City’s position from a business perspective and from the perspective of what is best for the FHV industry, I do think the City will ultimately prevail.
But dont take my word for it, read the City’s motion to dismiss, the City’s memo of law in support, Uber’s memo of law in opposition and the City’s memo of law in reply. All are attached here fo your review. I have my own opinions based upon my review of the law, but you can review and see if you agree to disagree and determine who you think will ultimately prevail.