A trade group of influential taxi medallion owners today filed a lawsuit against the city to put the brakes on Mayor Bloomberg’s ambitious plan to bring livery taxis to the outer boroughs.
The Metropolitan Taxicab Board of Trade — helmed by deep-pocketed multiple medallion owner Ron Sherman — claims the city broke the law by taking away the yellow cabs’ exclusive right to pick up street hails.
“How can the City of New York sell medallions to thousands of individual owner-drivers and small businesses, promising them the exclusive right to pick up street hails, only to take that right away in one destructive piece of legislation?” Sherman said.
The lawsuit filed in Manhattan also claims the legislation authorizing the city to sell 18,000 permits for livery taxis was unconstitutional because it was passed in Albany without a “home rule” message by the City Council.
The legislation passed in February.
It would for the first time give specially permitted livery cabs the right to pick up street hails in areas underserved by yellow cabs, like in the outer boroughs and in Upper Manhattan.
Previously, only yellow cabs had the right to pick up passengers from the street.
The city expects to start selling the permits in June.
The taxi group wants to stop that sale and is asking the judge for an injunction.
The Taxi & Limousine Commission tomorrow is scheduled to vote on rules regarding the livery taxi plan.
A spokesman for the city law department said the lawsuit will not prevent tomorrow’s hearing from moving forward.
“A great deal of careful thought and consideration went into the adoption of this important new transportation initiative,” said Ave Maria Brennan, Senior Counsel for the city.
“We are confident that it complies with all legal requirements — and that this challenge will be rejected by the courts.”