Boston Taxi Owners Ass'n. v. City of Boston

223 F. Supp. 3d 119, 2016 WL 7410777, 2016 U.S. Dist. LEXIS 177421
District Court, D. Massachusetts·Decided December 21, 2016·No. Civil Action No. 15-10100-NMG·Published·Cited by 4 cases

Opinion

MEMORANDUM & ORDER

GORTON, Judge.

Boston Taxi Owners Association, Inc. and taxi medallion holders, Steven Goldberg and Joseph Pierre (collectively, “plaintiffs”), allege that the City of Boston and Boston Police Commissioner William Evans (“defendants”) violated their equal protection rights by not applying the same regulatory framework to taxicabs and so-called transportation network companies (“TNCs”).

Defendants have filed a motion 1) to dismiss plaintiffs’ claims for declaratory and injunctive relief and 2) for judgment on the pleadings with respect to the equal protection and monetary relief claims. For the following reasons, defendants’ motion will be allowed.

I. Background

Eight months have elapsed since this Court denied plaintiffs’ second motion for a preliminary injunction. Since then, the General Court has enacted and the Governor of Massachusetts has signed into law a comprehensive statute, M.G.L. ch. 159Afé (“the Act”), regulating TNCs at the state level.

The Act defines a TNC as a corporation, partnership, sole proprietorship or other entity that uses a digital network to connect riders to drivers to pre-arrange and provide transportation.

Id. § 1. The Act also delegates regulation of TNCs to a new state “division” within the Massachusetts Department of Public Utilities. Id. § 2. That division implements insurance requirements, monitors fare estimates, ensures the safety and annual inspection of TNC vehicles and monitors the accommodation of riders with special needs. Id. The division also issues permits, which are annually renewed, to TNCs and it has the power to conduct hearings and impose penalties on TNCs which are non-compliant with the Act. Id. §§ 3, 6.

Moreover, the Act ostensibly removes TNCs from local regulation. Section 10 provides, in part:

[N]o municipality or other local or state entity, except the Massachusetts Port Authority ... may subject a [TNC] to the municipality’s or other local or state entity’s rate or other requirements ....

M.G.L. ch. 159A>/2, § 10. The Act does not, however, prevent municipalities from regulating “traffic flow and traffic patterns to ensure public safety and convenience.” Id.

In July, 2016, plaintiffs filed a second amended complaint, in which they allege one substantive claim for “due process/equal protection” violations (Count IV). So-called Counts I (declaratory judgment), II (injunctive relief) and III (damages) simply describe plaintiffs’ requested relief.

Pursuant to an order of this Court (Docket No. 66), defendants filed a status report in September, 2016, explaining that [122]*122they are now precluded from regulating TNCs. Shortly thereafter, plaintiffs filed their own status report and, for a third time, moved for a preliminary injunction. Defendants responded by filing a motion 1) to dismiss and 2) for judgment on the pleadings.

The facts underlying this case were summarized extensively in prior orders of this Court and will not be repeated here. Instead, the Court will assume familiaiity with that record and will incorporate and/or supplement additional facts where necessary.

II. Defendants’ Motion to Dismiss

Defendants move to dismiss as moot plaintiffs’ claims for declaratory and in-junctive relief (Counts I and II, respectively).

A. Legal Standard

Mootness is a constitutional issue that a court should ordinarily resolve before reaching the merits. ACLU of Mass. v. U.S. Conference of Catholic Bishops, 705 F.3d 44, 52 (1st Cir. 2013). The mootness doctrine ensures that claims will be justiciable throughout litigation not only when a claim is initially filed. Id. The First Circuit Court of Appeals has identified the following instances of cases becoming moot:

1) when the issues presented are no longer live or the parties lack a legally cognizable interest in the outcome;
2) when the court cannot give any effectual relief to the potentially prevailing party; and
3) if events have transpired to render a court opinion merely advisory.

KG Urban Enters., LLC v. Patrick, 969 F.Supp.2d 52, 56 (D. Mass. 2013) (citing Catholic Bishops, 705 F.3d at 52-53).

B. Application

Defendants assert that the Act preempts municipal regulation of TNCs and thus moots plaintiffs’ claims for declaratory and injunctive relief. Plaintiffs respond that the Act provides an exception under which defendants can still regulate TNCs.

1. Preemption

Under Massachusetts law, a local regulation is preempted if 1) the statute explicitly provides for preemption or 2) the purpose of the state law would be “frustrated” by local regulation such that there is an inference that the legislature intended to preempt “the field”. St. George Greek Orthodox Cathedral of W. Mass., Inc. v. Fire Dep’t of Springfield, 462 Mass. 120, 967 N.E.2d 127, 132 (2012) (quoting Town of Wendell v. Att’y Gen., 394 Mass. 518, 476 N.E.2d 585, 589 (1985)).

Here, the Act expressly prohibits defendants from regulating TNCs:

[N]o municipality or other local or state entity, except the Massachusetts Port Authority ... may subject a [TNC] to the municipality’s or other local or state entity’s rate or other requirements ....

M.G.L. ch. 159A/2, § 10.

Moreover, the comprehensiveness of the Act also creates a strong inference that defendants are barred from regulating TNCs. For example, the Act creates a new state division to regulate TNCs and contains numerous operational requirements. M.G.L. ch. 159A/6, §§ 2, 3. See St. George, 967 N.E.2d at 133-34.

Plaintiffs maintain that the Act contains an exception for municipalities to regulate “traffic flow and traffic patterns.” Id. § 10. Thus, according to plaintiffs, defendants can still regulate TNCs, by, for instance, applying certain taxi medallion and driver requirements to TNCs. Plaintiffs’ expansive reading of the exception would, how[123]*123ever, render the entire regulatory scheme of the Act nugatory and would “frustrate” the purpose of the statute. The Court therefore concludes that the Act preempts local regulation of TNCs.

2. Mootness

Because local regulation of TNCs is preempted by the new state law, plaintiffs’ claims for declaratory and injunctive relief are moot.

First, plaintiffs ask the Court to declare that TNCs must comply with local taxi ordinances. After the passage of the Act, however, defendants cannot regulate TNCs and thus any declaration from this Court would be merely advisory. See New Eng. Reg'l Council of Carpenters v. Kinton, 284 F.3d 9,18 (1st Cir.

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Boston Taxi Owners Ass'n. v. City of Boston, 223 F. Supp. 3d 119, 2016 WL 7410777, 2016 U.S. Dist. LEXIS 177421 (D. Mass. 2016).

223 F. Supp. 3d 119 (Boston Taxi Owners Ass'n. v. City of Boston) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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