United Car & Limousine Foundation Inc. v. New York City Taxi & Limousine Commission

178 Misc. 2d 734, 680 N.Y.S.2d 815, 1998 N.Y. Misc. LEXIS 542
CourtNew York Supreme Court
DecidedOctober 16, 1998
StatusPublished
Cited by3 cases

This text of 178 Misc. 2d 734 (United Car & Limousine Foundation Inc. v. New York City Taxi & Limousine Commission) 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
United Car & Limousine Foundation Inc. v. New York City Taxi & Limousine Commission, 178 Misc. 2d 734, 680 N.Y.S.2d 815, 1998 N.Y. Misc. LEXIS 542 (N.Y. Super. Ct. 1998).

Opinion

OPINION OF THE COURT

Richard F. Braun, J.

Plaintiff United Car & Limousine Foundation Inc. has brought this action for a declaratory judgment and injunctive relief. Plaintiff seeks in its complaint a judgment declaring that certain rules recently promulgated by defendant New York City Taxi and Limousine Commission (TLC), of which defendant Diane McGrath McKechnie is chairperson, are unconstitutional, and null and void; and enjoining defendants from implementing and enforcing the rules. Plaintiff moves for a judgment declaring the rules null and void, and preliminarily and permanently enjoining and restraining defendants and their agents, servants, employees, and successors from implementing and enforcing the rules. Defendants cross-move to dismiss the complaint for failure to state a cause of action.

As a preliminary matter, plaintiff cannot move by way of this preanswer motion for the ultimate relief sought but would have to await joinder of issue and then move for summary judgment, pursuant to CPLR 3212 (b) (see, City of Rochester v Chiarella, 65 NY2d 92, 101 [1985]). Thus, the branches of the motion by plaintiff seeking a declaratory judgment and a permanent injunction must be denied.

On May 28, 1998, defendant TLC held a public hearing regarding proposed amendments to the rules regulating medallion “yellow” taxicab and for-hire owners and drivers. Of the proposals which were adopted, plaintiff specifically challenges only two: 35 RCNY 1-40 (d) and 2-70. The former relates to insurance requirements as to yellow taxicab owners, and the latter to points to be assigned to yellow taxicab drivers for violations of proscribed conduct, and consequent license suspensions and revocations. Fifteen of the amended rules were challenged in a separate action by the yellow taxicab industry, and only one rule, not at issue here, was found to be invalid (New York City Comm. for Taxi Safety v New York City Taxi & Limousine Commn., 177 Misc 2d 855 [Sup Ct, NY County 1998]).

[736]*736The regulatory schemes for yellow taxicabs and for-hire vehicles are wholly separate (compare, 35 RCNY chs 1, 2, with ch 6). Defendants correctly point out that the rules that plaintiff challenges only apply to yellow taxicab owners and drivers, and not to owners and drivers of for-hire vehicles. The terms are defined in the rules (35 RCNY 1-01, 2-01, 6-01).

A taxicab is defined as: “a motor vehicle licensed by [defendant TLC] to carry passengers for hire, designed to carry a maximum of five (5) passengers, and authorized to accept hails from prospective passengers in the street.” (35 RCNY 1-01.)

A taxicab owner is defined as: “an individual, partnership or corporation licensed by [defendant TLC] to own and operate a medallion taxicab or taxicabs.” (35 RCNY 1-01.)

A taxicab driver is defined as: “a person licensed to drive a medallion taxicab in the City of New York.” (35 RCNY 2-01.)

A for-hire vehicle is defined as: “a motor vehicle carrying passengers for hire in the City, designed to carry fewer than nine passengers, excluding the driver, with three (3) or more doors, other than a taxicab, coach or wheelchair accessible van, and not permitted to accept street hails from prospective passengers in the street and required to be licensed by [defendant TLC].” (35 RCNY 6-01 [emphasis added].)

A for-hire vehicle owner is defined as: “an individual, partnership or corporation in whose name a vehicle is titled. For purposes of these rules, the term shall also apply to the lessee of the vehicle from the titled owner.” (35 RCNY 6-01.)

A for-hire driver is defined as: “a person who drives a for-hire vehicle and who is required to be licensed by [defendant TLC].” (35 RCNY 6-01.)

Plaintiff alleges that it is a not-for-profit corporation consisting of approximately 35 car and limousine companies. Plaintiff does not consist of any yellow taxicab owners or drivers. Thus, plaintiff has not set forth a cause of action in its challenge to the two rules that plaintiff is attacking, both of which only control the yellow taxicab industry and not the for-hire industry. Therefore, defendants’ cross motion to dismiss the complaint for failure to state a cause of action must be granted.

In order to obtain a preliminary injunction, plaintiff must show with competent proof a likelihood of success on the merits, that the members of plaintiff would suffer irreparable injury unless the relief sought is granted, and that a balancing of the equities lies in favor of plaintiffs members (Faberge Intl. [737]*737v Di Pino, 109 AD2d 235, 240 [1st Dept 1985]). Even if the court were not dismissing this action, plaintiff has not met its burden of proving that plaintiff is entitled to the preliminary injunction that plaintiff is seeking.

Pursuant to the New York City Charter, the purpose of defendant TLC includes that it shall “consonant with the promotion and protection of the public comfort and convenience *■ * * adopt and establish an overall public transportation policy governing taxi, coach, limousine, [and] wheelchair accessible van services” (NY City Charter § 2300). This includes establishing “standards of insurance and minimum coverage; standards for driver safety * * * [and] standards and criteria for the licensing of vehicles, drivers and chauffeurs, owners and operators engaged in such services” (NY City Charter § 2300). Defendant TLC’s “jurisdiction, powers and duties * * * shall include the regulation and supervision of the business and industry of transportation of persons by licensed vehicles for hire in the city” (NY City Charter § 2303 [a]). This extends to “issuance, revocation, [and] suspension of licenses for drivers, chauffeurs, owners or operators of vehicles, other than licenses issued pursuant to state law” (NY City Charter § 2303 [b] [5]), and “[requirements for the maintenance of financial responsibility, insurance and minimum coverage” (NY City Charter § 2303 [b] [7]). Defendant TLC has rule-making authority to effectuate its mandate (NY City Charter § 2303 [b] [11]).

Judicial review of an administrative agency’s rule making is extremely limited, and exercise of such authority is to be given a large degree of deference by the courts, especially where, as here, the agency has acted within the area of its expertise (Matter of Consolation Nursing Home v Commissioner of N. Y. State Dept. of Health, 85 NY2d 326, 331 [1995]). A court must determine whether the challenged agency rule has a rational basis and whether the rule is unreasonable, arbitrary, or capricious (supra). A court cannot base its review on whether the rule is the most effective way to effectuate the goal of the agency (Big Apple Food Vendors’ Assn. v City of New York, 228 AD2d 282, 282-283 [1st Dept 1996]).

Plaintiff’s attorneys rail speculatively that the insurance coverage increases will encourage substantially more claims in what the attorneys for plaintiff call “today’s litigious society”. The real outcome of the rules requiring increased insurance coverage is that persons who are injured by negligent for-hire and yellow taxicab drivers and owners will have a greater resource available from which the injured persons can be [738]*738compensated. This is a rational, legitimate, and laudatory governmental purpose on the part of defendants to further the public welfare (see, French Investing Co. v City of New York, 39 NY2d 587, 596, appeal dismissed 429 US 990 [1976]).

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Bluebook (online)
178 Misc. 2d 734, 680 N.Y.S.2d 815, 1998 N.Y. Misc. LEXIS 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-car-limousine-foundation-inc-v-new-york-city-taxi-limousine-nysupct-1998.