Desalegn Sisay v. Ricky Smith

310 F. App'x 832
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 12, 2009
Docket07-4477
StatusUnpublished
Cited by2 cases

This text of 310 F. App'x 832 (Desalegn Sisay v. Ricky Smith) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Desalegn Sisay v. Ricky Smith, 310 F. App'x 832 (6th Cir. 2009).

Opinions

STAFFORD, District Judge.

The plaintiffs are four taxicab companies and the five individuals who own those companies. All four companies operate in the City of Cleveland (the “City”). In this action, the plaintiffs challenge a determination by the City to award to other cab companies the exclusive right to use the outbound queue at the Cleveland Hopkins International Airport (“Hopkins”). The district court granted a preliminary injunction in favor of the plaintiffs, enjoining the City from interfering with the plaintiffs’ right to use the outbound queue at Hopkins. The City appeals from the district court’s preliminary injunction order. Because the plaintiffs have not demonstrated that they are likely to succeed on the merits of their lawsuit, we REVERSE.

BACKGROUND

Each of the individual plaintiffs is a first-generation immigrant whose cab company provides outbound service from Hopkins. Desalegn Sisay, an immigrant from Ethiopia, is the owner and president of ABC Taxi. As of September 2006, ABC Taxi had been in business for three years, dispatched 33 or 34 cabs, and generated less than one million dollars a year in gross revenue. Kashmir Sing, an immigrant from India, is the owner of Airport Taxi. As of September 2006, Airport Taxi had been in business for less than seven years, dispatched less than 50 cabs, and generated less than one million dollars per year in gross income. Abdi Omar, an immigrant from Somalia, is the owner and president of USA Taxi. As of September 2006, USA Taxi had been in business for four years, dispatched approximately 30 cabs, and generated less than one million dollars a year in gross revenue. Jasbir [835]*835Rondhawa and Harjit S. Dhillon, immigrants from Pakistan, are co-owners of United Cab Company. As of September 2006, United Cab Company had been in business for less than seven years, dispatched less than 50 cabs, and generated less than one million dollars per year in gross income. Each of these individuals and their cabs are licensed under Chapter 443 of the City’s traffic code.

In the City, licenses for cabs and cab drivers are issued by the Commissioner of Assessments and Licenses (the “Commissioner”) pursuant to the traffic code. Chapter 448 of the traffic code governs taxicabs. Among other things, Chapter 443 provides that, with a valid license, cabs may operate “upon the streets of the City.” Ch. 443.02. Licenses are issued annually as of December 1 and expire the following November 30, unless sooner suspended or revoked by the Commissioner. Id. The Commissioner may suspend or revoke licenses granted to any company that fails to perform the duties set forth in Chapter 443.021(a). Ch. 443.022. Absent suspension or revocation, “holders of existing licenses [are] entitled without [a] finding of convenience and necessity to retain their present licenses and secure renewals thereof upon the payment of the annual license fees.” Ch. 443.04(c). Chapter 443 is altogether silent about the operation of cabs at Hopkins.

Hopkins is owned and operated by the City. Chapter 571 of the Municipal Utilities and Services Code governs Hopkins. In particular, in a section entitled “Vehicles for Hire,” Chapter 571 provides that “[n]o person shall operate any vehicle for hire carrying passengers, unless such operation has been approved by the Airport Management and subject to such terms and conditions as may be prescribed.” Ch. 571.13. Prior to 2006, the airport’s taxi service was, in essence, an open system that permitted all City-licensed cabs to line up in the outbound queue to await their turn for fares. The airport did little to regulate — and derived no revenues from— the cabs operating at the airport.

In June of 2006, Ricky D. Smith (“Smith”) was hired as the City’s Director of the Department of Port Control. The responsibility for managing the City’s airports, including Hopkins, lies with the Director of the Department of Port Control. Before he was hired by the City, Smith was the chief operating officer for the Maryland Aviation Administration, which owns and operates the Baltimore/Washington International Thurgood Marshall Airport (“BWI”). Under Smith’s management, BWI established a closed outbound taxi system by contracting with a sole provider for exclusive outbound cab service from BWI.

In September of 2006, at Smith’s behest, the City issued a Request for Proposal (“RFP”) for outbound cab service from Hopkins. In short, the objective of the RFP was to provide a high level of service to patrons of the airport and the air traveling public through a clean, safe and dependable taxicab service. Among other things, the RFP provided that the award would be for an exclusive taxicab service to be operated to and from the airport only. All other taxicab services would be prohibited from picking-up fares at the airport. The RFP included a comprehensive list of minimum standards for cabs and drivers as well as a comprehensive list of minimum operating requirements. The RFP also provided that the successful bidder would be required to pay the airport a facility maintenance fee of fifty cents per outbound trip plus a per trip fee to be proposed by the bidder.

The RFP was, in part, the City’s response to a large number of passenger complaints about the operation of cabs in the queue. The City, through Smith, [836]*836wanted to address the complaints by establishing a new closed taxi system, a system that was better controlled by the airport, that employed a cab service — limited to 75 cabs — under contract to the airport, and that generated revenues for the airport. Among other things, the proposed exclusive service was intended to reduce what was perceived as an oversupply of cabs in the queue — an oversupply that led to immense competition over fares, rude and aggressive behavior among the cab drivers, and unhappy if not irate customers. As Smith explained:

Under the old arrangement, again where you would have over a hundred, maybe almost 200 taxicabs in the taxi queue at a given time; if you’re a taxi driver, you might get two fares in one day. And so you wait three hours for a fare. And that person, that fare, takes you to Brookpark. So you waited three hours for a fare that takes you to the other side of the airport.
Our experience was that in those cases, occasionally the taxi driver would get upset with the passenger who only wanted to go to Brookpark or Fairview Park because it took them out of the line and they had to go back in the line and wait for a very long period of time.
And this was associated with the number of taxicabs that were relying on the airport.

Although it reflected Smith’s vision, the RFP was developed by several members of the airport staff, headed by Patricia Singleton (“Singleton”), the Chief of Business Development and Management for the Department of Port Control. When developing the RFP, Singleton and her committee talked with consultants and surveyed the industry to get some insight into how exclusive taxi services work at other airports. Among other things, Singleton’s survey work resulted in the inclusion in the RFP of minimum qualifications for bidding cab companies. The minimum qualifications included seven continuous years of experience operating a cab service, not less than 50 cabs traveling simultaneously under a dispatcher, and not less than one million dollars in gross annual revenues. The minimum qualifications were intended to ensure that any cab company using the queue would have both the experience and the financial capacity to provide dependable service.

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Cite This Page — Counsel Stack

Bluebook (online)
310 F. App'x 832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/desalegn-sisay-v-ricky-smith-ca6-2009.