Uber Technologies Inc v. City of Seattle

CourtDistrict Court, W.D. Washington
DecidedDecember 31, 2024
Docket2:24-cv-02103
StatusUnknown

This text of Uber Technologies Inc v. City of Seattle (Uber Technologies Inc v. City of Seattle) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Uber Technologies Inc v. City of Seattle, (W.D. Wash. 2024).

Opinion

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5 6 7 UNITED STATES DISTRICT COURT 8 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 9 10 UBER TECHNOLOGIES, INC. and CASE NO. 2:24-cv-2103-MJP PORTIER, LLC, 11 ORDER DENYING MOTION FOR Plaintiffs, TEMPORARY RESTRAINING 12 ORDER AND PRELIMINARY MAPLEBEAR INC. d/b/a INSTACART, INJUNCTION 13 Plaintiff-Intervenor 14 v. 15 CITY OF SEATTLE, 16 Defendant. 17 18 19 This matter comes before the Court on Plaintiffs’ Motion for Temporary Restraining 20 Order and Preliminary Injunction. (Dkt. No. 8.) Having reviewed the Motion, the Response (Dkt. 21 No. 20), the Memorandum in Support Intervention (Dkt. No. 27), and all supporting materials, 22 and having held oral argument on December 31, 2024, the Court DENIES the Motion. 23 24 1 BACKGROUND 2 Plaintiffs Uber Technologies, Inc. and Portier, LLC (“Uber”) operate a food delivery 3 platform, Uber Eats, which allows customers to order food, groceries, and other items through 4 the Uber Eats phone app. (Declaration of Daniel Crawford ¶¶ 5–6 (Dkt. No. 10).) The app sends

5 the order to the business for fulfillment, and then offers the platform’s delivery drivers, or “app 6 workers,” the opportunity to pick up the orders and deliver them to the customers for a fee. App 7 workers do not have the same legal protections as employees, and are vulnerable to being 8 “deactivated,” or losing access to the delivery app and an “essential source of income.” 9 (Crawford Decl. ¶ 9.) 10 In August 2023, the City of Seattle passed the App-Based Worker Deactivation Rights 11 Ordinance (the “Ordinance”). The Ordinance is attached to this Order. Set to go into effect on 12 January 1, 2025, the Ordinance “establish[es] labor standards on deactivation protections for 13 app-based workers working in Seattle.” Ordinance at 1. The Ordinance adds a new chapter to the 14 Seattle Municipal Code, SMC 8.40, which takes aim at unwarranted deactivations by requiring

15 “network companies,” such as Uber, to “inform” app workers “in writing” of the company’s 16 deactivation policy, “defining what constitutes a violation that may result in deactivation.” SMC 17 8.40.050(A)(1). The policy must be “specific enough for an app-based worker to understand 18 what constitutes a violation and how to avoid violating the policy,” and it must be “reasonably 19 related to the network company’s safe and efficient operations.” SMC 8.40.050(A)(1)–(2). The 20 Ordinance includes a non-exhaustive list of example policies which are “not reasonably related 21 to . . . safe and efficient operations.” SMC 8.40.050(2)(a)–(h). 22 Beyond the deactivation policy requirement primarily at issue in this dispute, the 23 Ordinance includes: (1) the right for an app worker to challenge their deactivation, SMC

24 1 8.40.060; (2) a requirement that network companies to retain “records relied upon by the network 2 company to substantiate deactivation,” SMC 8.40.080(A); (3) an authorization for the Seattle 3 Office of Labor Standards (“OLS”) director to “promulgate, revise, or rescind rules,” SMC 4 8.40.125, and (4) permission for OLS to investigate potential violations of the Ordinance, SMC

5 8.40.150. And while the Ordinance prohibits OLS from penalizing or investigating “unwarranted 6 deactivations” until June 1, 2027, see SMC 8.40.130(B), there is a private right of action that 7 allows civil suits to be brought against network companies for violations, see SMC 8.40.230. 8 After the Ordinance was passed, Uber and other stakeholders engaged with the City 9 throughout the legislative process to refine the contours of the prohibitions and enforcement 10 mechanisms outlined by the Ordinance. (Declaration of Jasmine Marwaha ¶¶ 6, 9 (Dkt. No. 22).) 11 During that time, Uber “submitted multiple rounds of comments, offered testimony, and met 12 with industry stakeholders and OLS representatives,” but were “concerned about their ability to 13 timely assess and comply with the Ordinance and OLS rules.” (Declaration of Allison Ford ¶¶ 14 18, 20 (Dkt. No. 11).) Although Uber was invited to stakeholder meetings starting in 2021, (see

15 Marwaha Decl. ¶¶ 6, 9), and provided feedback early in the process, (see id. at Ex. 1), Uber 16 claims that the process “dragged on” and was subject to “substantial delays,” (see Ford Decl. ¶¶ 17 18–19). 18 Considering the City’s perceived foot-dragging, Uber filed its lawsuit and the Motion 13 19 days before the Ordinance took effect. Uber seeks to enjoin enforcement of SMC 8.40 against it, 20 arguing that they would be irreparably harmed should the law be allowed to take effect on 21 January 1, 2025. Though the Motion is not specific, the proposed order seeks a temporary 22 restraining order (“TRO”) and injunction preventing enforcement of the Ordinance against only 23

24 1 Uber and not others. (See Dkt. No. 8-1 at 1.) At oral argument, however, Uber clarified that it is 2 pursuing only an as-applied challenge to the Ordinance. 3 ANAYLSIS 4 A. Legal Standard

5 A TRO or preliminary injunction is “an extraordinary remedy that may only be awarded 6 upon a clear showing that the plaintiff is entitled to such relief.” Winter v. Nat. Res. Def. 7 Council, 555 U.S. 7, 22 (2008). The purpose of a TRO or preliminary injunction is to preserve 8 the status quo and the rights of the parties until a final judgment on the merits can be rendered. 9 U.S. Philips Corp. v. KBC Bank N.V., 590 F.3d 1091, 1094 (9th Cir. 2010). 10 TROs are governed by the same standard applicable to preliminary injunctions. Stuhlbarg 11 Int’l Sales Co. v. John D. Brush & Co., Inc., 240 F.3d 832, 839 n.7 (2001) (noting that 12 preliminary injunction and temporary restraining order standards are “substantially identical”). 13 To obtain a TRO or preliminary injunction, Uber must show it is (1) likely to succeed on the 14 merits, (2) likely to suffer irreparable harm in the absence of preliminary relief, (3) the balance of

15 equities tips in its favor, and (4) an injunction is in the public interest. Stormans, Inc. v. Selecky, 16 586 F.3d 1109, 1127 (9th Cir. 2009). A TRO or preliminary injunction is “never awarded as of 17 right.” Winter, 555 U.S. at 22. In each case, the Court “must balance the competing claims of 18 injury and must consider the effect on each party of the granting or withholding of the requested 19 relief.” Id. 20 The Ninth Circuit applies a “sliding scale” approach in considering the factors outlined in 21 Winter. A stronger showing of one element may offset a weaker showing of another. All. for the 22 Wild Rockies v. Cottrell, 632 F.3d 1127, 1131–32 (9th Cir. 2011). So “when the balance of 23 hardships tips sharply in the plaintiff’s favor, the plaintiff need demonstrate only ‘serious

24 1 questions going to the merits.’” hiQ Labs, Inc. v. LinkedIn Corp., 938 F.3d 985, 992 (9th Cir. 2 2019) (quoting All. for the Wild Rockies, 632 F.3d at 1135). 3 In considering the likelihood of success on the merits, the Court is not strictly bound by 4 the rules of evidence, as the temporary restraining order or preliminary injunction “is customarily

5 granted on the basis of procedures that are less formal and evidence that is less complete than in 6 a trial on the merits.” Univ. of Texas v. Camenisch, 451 U.S. 390, 395 (1981).

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Uber Technologies Inc v. City of Seattle, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uber-technologies-inc-v-city-of-seattle-wawd-2024.