El-Nahal v. Yassky

835 F.3d 248, 2016 U.S. App. LEXIS 15767, 2016 WL 4487986
Court of Appeals for the Second Circuit·Decided August 26, 2016·No. 14-405-cv·Published·Cited by 41 cases

Opinions

Judge POOLER concurs in part and dissents in part in a separate opinion.

DEBRA ANN LIVINGSTON, Circuit Judge:

Plaintiff-Appellant Hassan El-Nahal (“El-Nahal”), a New York City taxi driver, brought a ’ 42 U.S.C. § 1983 suit in the United States District Court for the Southern District of New York (Forrest, /.), principally alleging that the New York City Taxi and Limousine Commission (“TLC”) — through Defendants-Appellees Matthew Daus, a former chairman of the TLC; David Yassky, then-chairman of the TLC; Michael Bloomberg, then-Mayor of New York City; and the City of New York (collectively, “Defendants”) — had deprived him of his Fourth Amendment rights in various ways. As relevant to this appeal, El-Nahal argued that the TLC’s mandate that all New York City taxicabs install technology systems equipped with Global Positioning System (“GPS”) tracking abilities amounted to a property-based search pursuant to United States v. Jones, — U.S.-, 132 S.Ct. 945, 181 L.Ed.2d 911 (2012), and that this search violated his Fourth Amendment rights. The District Court granted summary judgment to Defendants on all of El-Nahal’s Fourth Amendment claims, including his Jones claim, which is the only issue before us on appeal. Because the record is devoid of evidence as to whether El-Nahal had any interest in a taxi at the time of an alleged trespass or physical intrusion, El-Nahal failed to make a sufficient showing on an essential element of his property-based Fourth Amendment claim and Defendants were entitled to summary judgment. Accordingly, we AFFIRM the district court’s [250] grant of summary judgment to Defendants.

I.

A. Background

The TLC is an agency of the City of New York that is tasked with the “regulation and supervision of the business and industry of transportation of persons by licensed vehicles for hire in the city.” N.Y.C., N.Y., Charter ch. 65, § 2303a. Its duties include the regulation of “rates,” “standards and conditions of service,” “Requirements of standards of safety and ... efficiency in the operation of vehicles and auxiliary equipment,” and the “establishment of ... [a] uniform system of accounts,” which entails “the right ... to inspect books and records and to require the submission of such reports as the commission may determine.” Id. § 2303b. Pursuant to the New York City Administrative Code, the TLC may promulgate rules as necessary to implement its authority. N.Y.C., N.Y., Code § 19-503(a).

In 2004, the TLC promulgated a rule requiring that all New York City taxicabs begin to use a Taxicab Technology System (“TTS”), a physical device located in the backseat of taxicabs that would, among other things, provide credit and debit card payment services for customers, as well as transmit to the TLC electronic data about trips made by taxi drivers gathered by means of GPS. See N.Y.C., N.Y., Rules tit. 35, § 1-01 (2010). Through the TTS, the TLC would collect — only when drivers were on duty — “the taxicab license number; the taxicab driver’s license number; the location of trip initiation; the time of trip initiation; the number of passengers; the location of trip termination; the time of trip termination; the metered fare for the trip; and the distance of the trip.” Id. § 3-06(b). Prior to the implementation of the TTS rule, the TLC required drivers to provide this same information in the form of handwritten trip records. The TTS rule mandated that taxicab medallion owners procure TTSs in their taxis by August 1, 2007. Id. § l-ll(g).

Around the same time as the TLC promulgated the TTS rule, the TLC also established a new system for taxi fare “rate codes,” corresponding to different types of fares a taxi driver may charge. Rate Code 1, for instance, is the standard New York City rate and is used for fares from point-to-point within New York City. Rate Code 4, meanwhile, doubles the fare for each additional unit driven, and may be engaged by a taxi driver only under certain circumstances upon entering Nassau or West-chester County.

In March 2010, the TLC issued a press release announcing that it had discovered that some taxicab drivers were using the Rate Code 4 setting to overcharge passengers. “Using GPS technology installed in taxicabs,” the press release explained, the “TLC has discovered 1,872,078 trips where passengers were illegally charged the higher rate” by 35,558 drivers for a total of $8,330,155 in alleged overcharges. J.A. 135. The press release qualified this finding by noting that “there were 361 million taxi trips during that time period, so the illegal fare was only charged in 0.5% of all trips,” and that the alleged “scam was primarily perpetrated by a small number of drivers, with 3,000 drivers overcharging more than 100 times.” Id.

Two months later, in May 2010, the TLC issued a second press release that modified its initial findings, announcing that the “TLC’s completed analysis” revealed that “21,819 taxicab drivers overcharged passengers a total of 286,000 times ... for a total estimated overcharge of almost $1.1 million.” J.A. 146. The press release added that the TLC believed that 13,315 out of [251] the 21,819 drivers had “engaged in overcharging just one or two times,” but that it expected “to be able to prove that some drivers engaged in 1,000 or more overcharges.” Id. In response to the scandal, the Manhattan District Attorney’s office arrested 59 drivers “for defrauding and stealing from their customers,” J.A. 150, and the TLC programmed passenger screens to display “a highly visible alert that advises riders when the higher, out of town rate is activated,” J.A. 151. The TLC also brought administrative actions against many drivers.

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El-Nahal v. Yassky, 835 F.3d 248, 2016 U.S. App. LEXIS 15767, 2016 WL 4487986 (2d Cir. 2016).

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