The taxi owners claimed the city led them astray when selling them medallions before a major ride-sharing expansion.
Make your contribution now and help Gothamist thrive in 2023.Yellow cab owners can't sue New York City after the value of their taxi medallions dropped following an expansion of ride-share apps like Uber and Lyft, according to the state's top court.
A group of yellow cab owners has spent years trying to sue the city for failing to act in “good faith” when auctioning off medallions — permits that allow taxis to operate — in 2013, just as app-based ride-sharing services started to take off in the city.on Thursday. The court found the city was under no obligation to keep in place any rules limiting the ride-sharing, even after the medallion sale.
In a statement, Nick Paolucci, a spokesperson for the city’s Law Department, said the court’s ruling “rightly recognized” the taxi owners couldn’t sue. “We’re gratified that the state’s highest court has put to bed the claims of taxi medallion purchasers that the city was required to preserve the value of their medallions by thwarting ride-hailing apps’ growth-at-any-cost business strategy,” said Paolucci.
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