G&C Transportation, Inc. v. McGrane

32 Misc. 3d 872
CourtNew York Supreme Court
DecidedJune 24, 2011
StatusPublished

This text of 32 Misc. 3d 872 (G&C Transportation, Inc. v. McGrane) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
G&C Transportation, Inc. v. McGrane, 32 Misc. 3d 872 (N.Y. Super. Ct. 2011).

Opinion

OPINION OF THE COURT

Lawrence H. Ecker, J.

Motion sequence Nos. 3 and 4 are consolidated for disposition.

Petitioners/plaintiffs G&C Transportation, Inc. and Newburgh Kabs, Inc. (hereinafter petitioners) are taxicab operators in the City of Newburgh who bring this hybrid proceeding pursuant to CPLR article 78 to review a determination of the City Council [874]*874of the City of Newburgh (hereinafter respondents) adopting City of Newburgh Ordinance No. 3-2008. Petitioners also seek a judgment pursuant to CPLR 3001 declaring Ordinance No. 3-2008 of chapter 272 of the Code of the City of Newburgh is unconstitutional on various grounds.

Background

On February 25, 2008, the City Council of the City of New-burgh adopted Ordinance No. 3-2008 (hereinafter the Ordinance) which amended chapter 272 of the Code of the City of Newburgh in its entirety.1 The Ordinance sets forth a scheme for municipal regulation of taxicab services and taxi drivers operating within the City of Newburgh.

Petitioners, which are providers of taxicab services in the city, commenced this proceeding and action by notice of petition and amended petition returnable on July 16, 2008 seeking a preliminary injunction enjoining enforcement of the Ordinance, a judgment pursuant to CPLR article 78 annulling the Ordinance, and a declaratory judgment that the Ordinance is unconstitutional on various grounds. They argue, “the Ordinance will end the legitimate taxicab business in the City of Newburgh, and create chaos as residents needing transportation for basic staples of life are left stranded.” (Amended petition at 1-2.) While conceding respondents have the right to regulate the registration and licensing of taxicabs within the City of New-burgh, petitioners allege the effect of the Ordinance will be to impose economically impracticable costs on taxicab operations which will cause the cessation of taxicab operation, force the taxicab operators underground, and force fare increases that will prevent the residents who rely on taxicabs for the basic necessities of food, clothing, and medical treatment from having access to affordable transportation. They also allege the Ordinance imposes an unconstitutional taking of property by destroying trademarks and mandating the provision of services at below-cost rates. (Amended petition at 2.)

On January 5, 2009, this court (Alessandro, J.) issued an order sua sponte dismissing the declaratory judgment causes of action. It determined chapter 272, as amended, and its enforcement, did not violate any of the petitioners’ constitutional rights and was a reasonable exercise of legislative authority. On April 20, 2009, judgment was entered.

[875]*875On April 13, 2010, the Appellate Division, Second Department reversed, on the law, and reinstated the declaratory judgment causes of action. (72 AD3d 819.) It held Supreme Court gave no notice to the parties that it was contemplating the summary dismissal of the causes of action in issue. Furthermore, the respondents had made no application for the relief. As a result, the declaratory judgment causes of action were reinstated and are now before the court.2

Thereafter, on July 10, 2010, the respondents enacted Ordinance No. 11-2010 which amended Ordinance No. 3-2008 in several respects. In a preamble added as section 272-1, the respondents clarified that the regulatory scheme was limited in scope to taxi service wholly within city boundaries.3

The preamble states:

“The City Council of the City of Newburgh finds that suitable public transportation is lacking within the City of Newburgh and that transportation by taxicab within the city limits is an important and viable form of transportation for its residents and visitors. The City Council recognizes that Section 151 of the New York State Transportation Law permits the municipal regulation of taxi service which is conducted wholly within municipal boundaries. Therefore, the City Council further finds that it is necessary to regulate and license a taxi service conducted wholly within the boundaries of the City of Newburgh for the purpose of maintaining order, enforcing laws, protecting property, and caring for the safety, health, comfort, and general welfare of the inhabitants and visitors to the City of New-burgh. This ordinance does not seek to regulate, in any way, taxi service which is not conducted wholly within the City of Newburgh’s municipal boundaries.”

Transportation Law § 151, as referenced in the preamble, specifically exempts taxis and liveries with the seating capacity of fewer than 15 passengers from state regulation when the service is conducted wholly within a municipality authorized to adopt an ordinance relating to registration and licensing under [876]*876General Municipal Law § 181. Taxicabs are also exempt from federal regulation because taxicabs are local in nature. (49 USC § 13506 [a] [2].) The language of Transportation Law § 151 specifically authorizes a municipality to regulate certain “transportation for compensation” including taxi or livery services, provided such service is conducted wholly within its boundaries. (1996 Ops Atty Gen No. 96-39; People v Kadar, 14 Misc 3d 857, 859-860 [Ithaca City Ct 2006].)

The enactment of Ordinance No. 11-2010 also repealed section 272-11 (D), as contained in Ordinance No. 3-2008. Section 272-11 (D) effectively permitted the police to stop and visually inspect any taxicab pursuant to the City of Newburgh Police Taxi Inspection Safety Program. The repealed section had provided that the acceptance by an owner or operator of a taxi license issued by the City constituted the licensee’s continuing consent for the police to stop and inspect the taxicab. As set forth, infra, the repeal of this challenged section of the Ordinance has rendered moot a number of petitioners’ reinstated causes of action.

Petitioners move for summary judgment on their 11 remaining and reinstated claims to strike down Ordinance No. 3-2008 as unconstitutional on various grounds. Respondents cross-move for summary judgment dismissing the complaint in its entirety.

That a legislative enactment will be presumed constitutional is an elementary but significant principle of law. The strength of this presumption, sometimes underestimated, has been repeatedly underscored by the courts of this state. (Marcus Assoc. v Town of Huntington, 45 NY2d 501, 505 [1978]; Wiggins v Town of Somers, 4 NY2d 215, 218 [1958].) As the Court of Appeals has stated,

“The exceedingly strong presumption of constitutionality applies not only to enactments of the Legislature but to ordinances of municipalities as well. While this presumption is rebuttable, unconstitutionality must be demonstrated beyond a reasonable doubt and only as a last resort should courts strike down legislation on the ground of unconstitutionality.” (Marcus Assoc. v Town of Huntington at 505, quoting Lighthouse Shores v Town of Islip, 41 NY2d 7, 11 [1976].)

In Lighthouse Shores, the Court stated,

“The ordinance may not be arbitrary. It must be reasonably related to some manifest evil which, [877]*877however, need only be reasonably apprehended.

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Bluebook (online)
32 Misc. 3d 872, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gc-transportation-inc-v-mcgrane-nysupct-2011.