Dial a Car, Inc. v. Transportation, Inc.

884 F. Supp. 584, 35 U.S.P.Q. 2d (BNA) 1271, 1995 WL 259440, 1995 U.S. Dist. LEXIS 5927
CourtDistrict Court, District of Columbia
DecidedApril 27, 1995
DocketCiv. A. 93-2170 (PLF)
StatusPublished
Cited by28 cases

This text of 884 F. Supp. 584 (Dial a Car, Inc. v. Transportation, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dial a Car, Inc. v. Transportation, Inc., 884 F. Supp. 584, 35 U.S.P.Q. 2d (BNA) 1271, 1995 WL 259440, 1995 U.S. Dist. LEXIS 5927 (D.D.C. 1995).

Opinion

OPINION

FRIEDMAN, District Judge.

Dial A Car, Inc., has sued Transportation, Inc., which does business as Red Top Cab Co. of Arlington, and Barwood, Inc., which does business as Barwood Cab Co. of Maryland. Dial A Car alleges that the defendants have attempted illegally to monopolize the relevant market and have engaged in a conspiracy in restraint of trade, in violation of the Sherman Antitrust Act, 15 U.S.C. § 1 et seq., and the D.C. Unfair Trade Practices Act, D.C.Code § 28-4508. It also alleges that defendants have engaged in unfair competition through the use of false and misleading statements and representations in advertising and to customers, in violation of Section 43 of the Lanham Act, 15 U.S.C. § 1125. Finally, it alleges tortious interference with contract and tortious interference with prospective business relations. Barwood has counterclaimed, alleging defamation and tortious interference with prospective business relations. The case is before the Court on Transportation, Inc.’s motion to dismiss the complaint, Barwood, Inc.’s motion for judgment on the pleadings and Dial' A Car’s motion to dismiss Barwood, Inc.’s counterclaims.

I. FACTS

Dial A Car is licensed in the District of Columbia to provide passenger transport services for hire in and around the greater Washington Metropolitan Area. Complaint at ¶ 5. Dial A Car’s primary business is to offer corporations, law firms and other businesses in the District of Columbia Corporate Account Transportation Services. Id. at ¶¶ 21, 43. Through this service, Dial A Car provides pre-arranged, or “on-call,” point-to-point transportation to employees and clients of Corporate Account Customers. Id. at ¶ 10. It does not serve the general public. Id. at ¶ 13. The service is charged on a contractual rather than on a tariff basis, with central billing and accounting through vouchers for the appropriate fares that are then charged to established Corporate Accounts. Id. at ¶¶ 10, 13. In providing this service, Dial A Car uses luxury sedans or limousines, *587 sometimes called Blue Cars, which it asserts are more expensive to operate than regular taxicabs. Id. at ¶ 12. While some of Dial A Car’s competitors provide both regular taxicab service and Corporate Account Transportation Services, Dial A Car provides only the latter. Id. at ¶21.

By contrast, those providing regular taxicab service accept or solicit passengers for transport on the streets on an ad hoc basis and charge them on a tariff basis. Complaint at ¶¶ 13, 14. Regular taxicabs in the District of Columbia are regulated by the District of Columbia Taxicab Commission which has the authority to determine the extent to which regular taxicabs from other jurisdictions may lawfully operate in the District of Columbia. Id. at ¶ 15. Regular taxicabs from elsewhere are licensed in their county of origin and are regulated by their county of licensure. Id. at ¶ 14. According to Dial A Car, regular taxicabs may lawfully service Corporate Accounts, but only to the extent that such regular taxicabs are licensed to make the specific journey for which they are dispatched. Id. at ¶ 20.

Transportation, Inc., doing business as Red Top, is licensed to provide regular taxicab service in Arlington County, Virginia, but is not licensed in the District of Columbia. Complaint at ¶¶ 6, 16, 17. Barwood, Inc. is licensed to provide regular taxicab service in Montgomery County, Maryland, but is not licensed in the District of Columbia. Id. at ¶¶7, 16, 18. Red Top and Barwood each provide regular taxicab service in their respective jurisdictions and provide Corporate Account Transportation Services in the greater Washington Metropolitan Area. Id. at ¶¶ 6, 7. Dial A Car asserts that neither Red Top nor Barwood is licensed by the District of Columbia Taxicab Commission to provide either taxicab service generally or on-call point-to-point transportation services in the District of Columbia. Id. at ¶ 16.

The District of Columbia Taxicab Commission has set out in D.C. Taxicab Commission Office Administrative Order No. 4 the conditions under which taxicab operators not licensed in the District of Columbia may deliver and pick up passengers in the District of Columbia. Complaint at ¶¶ 25, 32. Dial A Car alleges that Office Administrative Order No. 4 strictly limits the services Red Top and Barwood may provide in the District of Columbia. It asserts that the Order allows Red Top and Barwood to drop off passengers in the District of Columbia only if they were picked up in the county of licensure, Arlington or Montgomery County, respectively, and to1 pick up passengers in the District of Columbia only if the passengers have a direct destination of Arlington or Montgomery County, respectively. Plaintiff maintains that Office Administrative Order No. 4 does not authorize Red Top or Barwood to come into the District of Columbia to pick up passengers and deliver them either to destinations within the District of Columbia or to any other destination not located within their respective county of licensure. Id. at ¶¶ 25-27, 32-34. 1

Dial A Car alleges that Red Top and Bar-wood are violating Office Administrative Order No. 4 by coming into the District of Columbia to pick up Corporate Account passengers in regular taxicabs at locations other than their counties of licensure and delivering them to destinations in the District of Columbia or to locations other than their counties of licensure. Complaint at ¶¶ 26, 27, 33, 34. It claims that defendants also violate *588 Office Administrative Order No. 4 when their taxicabs fail to return directly to their county of licensure after delivering passengers in the District and instead “loiter” in the District “to secure additional illegal passenger journeys from Corporate Accounts.” Id. at ¶¶28, 35. Dial A Car maintains that Red Top and Barwood have no lawful authority to operate their regular taxicabs in this market, that their conduct is in violation of D.C. regulations and the regulations of defendants’ counties of licensure, that by illegally using regular taxicabs defendants provide Corporate Account Services at lower prices than Dial A Car can, and that Dial A Car has lost and is losing Corporate Account business because of defendants’ illegal conduct. Id. at ¶¶ 29, 36, 46. Dial A Car claims that defendants’ conduct constitutes an attempted monopolization of the Corporate Account Transportation Service business in the District of Columbia and a conspiracy to restrain trade, in violation of the Sherman Antitrust Act, 15 U. S.C. § 1 et seq., and the D.C. Unfair Trade Practices Act, D.C.Code § 28-4508.

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Bluebook (online)
884 F. Supp. 584, 35 U.S.P.Q. 2d (BNA) 1271, 1995 WL 259440, 1995 U.S. Dist. LEXIS 5927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dial-a-car-inc-v-transportation-inc-dcd-1995.