For-Hire Vehicle Industry Coalition Seeks Legal Recourse Against New York City Taxi and Limousine Commission

NEW YORK, March 23, 2018 /PRNewswire/ -- McElroy, Deutsch, Mulvaney & Carpenter, LLP ("MDM&C" or "the Firm") today announced that, on behalf of a coalition of For-Hire Vehicle industry organizations, companies and individuals, the Firm has filed suit in the United States District Court Southern District of New York seeking injunctive relief against the New York City Taxi and Limousine Commission (TLC) on behalf of the For Hire Vehicle industry.

The lawsuit was filed in response to recent amendments to the TLC's Rule 59, which require the City's for-hire vehicle (FHV) industry – comprised of livery base owners, black car owners, luxury limousine base owners, and individual for-hire vehicle owner / operators – to retrofit or purchase new vehicles so that by 2022, one quarter of all FHVs must be wheelchair accessible.  The new regulations also require that 5% of New York City's FHV fleet must be compliant by July 1, 2018, or owners / operators will face steep fines and license suspensions.

The FHV industry's law suit seeks to overturn amendments to TLC Rule 59 which, if enacted, are estimated to impose more than one billion dollars in compliance-related costs on livery car owners and base operators.  The short term expense for interim compliance this year is expected to top $300,000,000.  The suit challenges the TLC's authority to amend Rule 59 as unconstitutional and in violation of  federal regulations that exempt taxi service providers from making what Congress has found to be an unreasonable accommodation.

The FHV industry has consistently sought to improve wheelchair accessibility, and in September 2017 proposed that the TLC consider adoption of a Central Dispatch System – to be fully funded by the FHV industry – designed to ensure that wheelchair bound customers are provided with  priority service through the nearest accessible vehicle. That service model has worked well elsewhere but the  TLC refused to commit to the Central Dispatch System.

FHV industry counsel, Steven J. Shanker, who heads the Transportation Practice Group at McElroy, Deutsch Mulvaney & Carpenter, LLP, said that, "Our client's drivers are proud of the role they have long played in helping all passengers, and should not be fined, punished or forced to close their business as a result of TLC rules that are neither well-researched nor financially viable. The FHV industry is seeking this legal remedy not only to protect their interests, but also to ensure that New York City residents can continue to benefit from the service they provide."

Mr. Shanker noted that the TLC enacted Rule 59 without regard to the constitutional principle of separation of powers, embodied in the federal and state constitutions, which reserves policymaking decisions exclusively to the legislative branch – in this case the City Council, which has yet to enact any legislation. He said, "Unless and until the City Council, or the State Legislature act on this, or the TLC acts in a reasonable manner, the FHV industry is compelled to invoke the protection of the federal courts in order to preserve its viability."

The lawsuit also seeks to forestall implementation of the specific Rule 59 amendments while the case is under consideration by the court.

About McElroy, Deutsch, Mulvaney & Carpenter, LLP

McElroy, Deutsch, Mulvaney & Carpenter, LLP is a full-service law firm that offers a diverse range of practice areas including litigation, construction, labor and employment, health care, cybersecurity, insurance, fidelity & surety, bankruptcy, real estate, corporate transactions, hospitality, franchise, tax, environmental, banking, immigration, transportation, white-collar defense and corporate compliance. Visit www.mdmc-law.com for more information.

Contact: Nicole Alexander
Title: Director of Professional and Business Development
McElroy, Deutsch, Mulvaney & Carpenter, LLP
Phone: (973) 425-8141
[email protected]

SOURCE McElroy, Deutsch, Mulvaney & Carpenter, LLP

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