Nassau & Suffolk Cnty. Taxi Owners Ass'n, Inc. v. State

336 F. Supp. 3d 50
CourtDistrict Court, E.D. New York
DecidedSeptember 28, 2018
DocketCV 17-3839 (AKT)
StatusPublished
Cited by20 cases

This text of 336 F. Supp. 3d 50 (Nassau & Suffolk Cnty. Taxi Owners Ass'n, Inc. v. State) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nassau & Suffolk Cnty. Taxi Owners Ass'n, Inc. v. State, 336 F. Supp. 3d 50 (E.D.N.Y. 2018).

Opinion

A. KATHLEEN TOMLINSON, Magistrate Judge:

I. PRELIMINARY STATEMENT

The Nassau and Suffolk County Taxi Owners Association, Inc. ("NSTOA"), along with its members, licensed taxicab companies Lindy's Fleet Service, Inc., EOLA Management, Corp., d/b/a All Island Transportation of Mineola, David Bros., Inc., d/b/a David Enterprises, North Shore Transportation Services, Inc., and Colonial Transportation of Long Island, Inc., (collectively, "Plaintiffs") bring this action against the State of New York, Governor Andrew Cuomo, and Commissioner of the New York State Department of Motor Vehicles Theresa Egan (collectively, "Defendants"). Plaintiffs challenge the constitutionality of recently enacted legislation authorizing the Department of Motor Vehicles ("DMV") to license and regulate transportation network companies ("TNC") such as Lyft and Uber. Plaintiffs allege that New York's legislative scheme "has created a two-tiered system that violates Plaintiffs' rights to Equal Protection without a rational basis for such distinction" by creating an "arbitrary distinction *58between TNCs and other for-hire vehicles." Plaintiff's Amended Complaint ("Am. Compl.") [DE 38] ¶ 5.

Presently before the Court1 is Defendants' motion to dismiss Plaintiffs' Amended Complaint, pursuant to Federal Rules of Civil Procedure 12(b)(1), 12(b)(6), and 12(b)(7). See generally Defendants' Memorandum in Support of their Motion to Dismiss ("Defs.' Mem.") [DE 48-2]; Defendants' Reply Memorandum ("Defs.' Reply") [DE 48-1]. Plaintiffs oppose the motion on a variety of grounds. See generally Plaintiffs' Memorandum in Opposition ("Pls.' Opp'n.") [DE 46]. For the reasons set forth below, Defendants' motion to dismiss the Amended Complaint is GRANTED.

II. BACKGROUND

A. Factual Background

The Court takes the following facts from Plaintiffs' Amended Complaint and the documents attached to it, and accepts Plaintiffs' well-pleaded factual allegations as true for purposes of the instant motion. Aegis Ins. Servs., Inc. v. 7 World Trade Co., L.P. , 737 F.3d 166, 176 (2d Cir. 2013). However, the Court does not credit or consider conclusory assertions or formulaic recitations of the legal elements of a claim. Ashcroft v. Iqbal , 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009).

The Court notes that Plaintiffs have attached as an exhibit to their Amended Complaint the text of the statutory provision at issue in this case, Article 44-B of the New York Vehicle and Traffic Law ("Article 44-B"). See generally Am. Compl, Ex. 1. Although not explicitly incorporated into the body of the Amended Complaint, the Court may properly consider the text of Article 44-B and the Session Laws enacting it -- neither of which is disputed -- as attachments to Plaintiffs' pleading and as matters of legislative record. Romero v. Bestcare Inc. , No. 15-CV-7397, 2017 WL 1180518, at *3 (E.D.N.Y. Mar. 29, 2017) ("On a motion to dismiss, the court may consider documents attached to the complaint, documents incorporated into the complaint by reference and facts of which the court may take judicial notice.") (citing Kalyanaram v. Am. Ass'n of Univ. Professors at N.Y. Inst. of Tech. Inc. , 742 F.3d 42, 44 n.1 (2d Cir. 2014) ); Oneida Indian Nation v. New York, 691 F.2d 1070, 1086 (2d Cir. 1982) (holding that on a Rule 12 motion, judicial notice of "law, legislative facts, or factual matters that are incontrovertible" is appropriate).

1. Article 44-B of the Vehicle and Traffic Law

On April 10, 2017, Governor Cuomo signed into law Assembly Bill 3009C/Senate Bill 2009C as Chapter 59 of the Laws of 2017, which implemented parts of the 2017-18 New York State budget. Am. Compl. ¶ 1. Part AAA of Chapter 59 created a new Article 44-B of the New York Vehicle and Traffic Law ("VTL") regulating TNC services, which include ride-sharing services provided by companies like Uber and Lyft. Id. ; see 2017 N.Y. Sess. Laws 94. In the words of the legislature, Article 44-B is intended "to ensure the safety, reliability, and cost-effectiveness of transportation network company (TNC) services within the state of New York and to preserve and enhance access to these important transportation options for residents and visitors to the state." N.Y. Sess. Laws 93-94. To accomplish this, Article 44-B creates a statewide TNC licensing scheme administered by the DMV. See N.Y. VEH. & TRAF. LAW § 1692(2)(a). The *59legislation also establishes requirements for TNCs relating to insurance, id. §§ 1692(2)(a), 1693, 1695, how fares are communicated and charged, id. §§ 1692(4)-(8), driver and vehicle eligibility, id. §§ 1696, 1699, and maintenance of records, id. §§ 1697, 1698, among other things.

Article 44-B defines a "TNC vehicle" as a vehicle

(a) used by a transportation network company driver to provide a TNC prearranged trip originating within the state of New York; and
(b) owned, leased or otherwise authorized for use by the transportation network company driver;
(c) such term shall not include:
(i) a taxicab, as defined in section one hundred forty-eight-a of this chapter and section 19-502 of the administrative code of the city of New York, or as otherwise defined in local law;

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Bluebook (online)
336 F. Supp. 3d 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nassau-suffolk-cnty-taxi-owners-assn-inc-v-state-nyed-2018.