Taxi, limo drivers launch $400M class-action lawsuit against Uber X, Uber XL
Posted July 23, 2015 1:07 pm.
Last Updated July 24, 2015 10:18 am.
This article is more than 5 years old.
Taxi and limousine drivers have launched a multi-million-dollar class-action lawsuit against UberX and UberXL.
The lawsuit seeks $400 million in compensation, $10 million in punitive damages and an injunction prohibiting UberX from continuing to operate in Ontario.
The class action has been started by Sutts, Stronsberg LLP on behalf of all licenced taxi and limousine owners, drivers and brokers.
Partner Jay Strosberg said there is a provision in the Highway Traffic Act that says you can only charge people for transportation service if you are licenced.
“It’s very clear,” said Strosberg. “UberX and UberXL effectively contravene that section every time an unlicensed driver picks up a passenger in Ontario.”
Sutts, Strosberg LLP said that money is being unlawfully diverted from the licensed taxi drivers.
“There is an illegal act that is happening every hour, every day,” he said.
Uber Canada responded by email and said the “protectionist suit is without merit.”
“As we saw from a recent court ruling in Ontario, Uber is operating legally and is a business model distinct from traditional taxi services,” Uber Canada said.
The City of Toronto had applied for an injunction against UberX, UberBLACK and UberTAXI early in July that was dismissed by an Ontario Superior Court judge.
“Our action is about something entirely different, which is whether UberX and UberXL drivers are contravening the Highway Traffic Act,” said Strosberg.
After a lengthy ruling that delved into semantics, the judge found that “Uber is not carrying on a business in Toronto that is required to be licenced as a limousine service company or taxicab broker.”
Uber said it was merely connecting passengers and is a communications, not cab or limousine, company.
Before this, the taxi industry took their case to city hall urging Mayor John Tory to crack down on the ride-sharing service and threatened to clog the temporary Pan Am Games high-occupancy vehicle (HOV) lanes.
Tory said Monday he wants city council to rewrite bylaws to create a level playing field for taxi drivers, creating a single bylaw covering both Uber and taxi companies.
This comes on the same day that Uber has expanded its business to southwest Ontario. UberX will be available in London, Waterloo, Hamilton and Guelph.
The class action suit must still be certified and is the first step to an actual lawsuit against Uber.
