Appeals Court Rejects Lawsuit from Taxi Industry and CUs

In another legal setback for the New York City taxi medallion industry, the Second Circuit Court of Appeals rejected a lawsuit challenging how New York City regulates ride-sharing companies, affirming a lower court decision.

The taxi industry along with credit unions that financed taxi medallions sued the City of New York, the Taxi & Limousine Commission (TLC) and its Chair Meera Joshi for allegedly violating their rights to equal protection and due process and that they suffered a taking.

The court acknowledged that "that the plaintiffs may have suffered a decrease in the value of their medallions as a consequence of regulations imposed by the TLC. But this decrease is not something that violates the Due Process Clause.”

The court noted that "taxi medallions authorize the owners to own and operate taxis." It does not protect them from competition.

The court also ruled that the takings claim was not ripe, because the plaintiffs have failed to avail themselves of state procedures for seeking compensation.

Read the decision.