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SUPREMECOURTOFTHESTATEOFNEWYORKCOUNTYOFNEWYORKMETROPOLlTANTAXICABBOARDOFTRADE,OSSMANALI,AYALLOHACKINGCORP.,BONANZACABCORP.,BATHCABCORP.,andRONDEBCABCORP.,Plaintiffs,-against-MICHAELR.BLOOMBERG,inhisofficialcapacityasMayoroftheCityofNewYork;CITYOFNEWYORK;THENEWYORKCITYTAXI
&
LIMOUSINECOMMISSIONC"TLC");DAVIDS.YASSKY,inhisofficialcapacityasCommissioner,Chair,andChiefExecutiveOfficeroftheTLC,Defendants.IndexNo.
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12012
COMPLAINT
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Plaintiffsbyandthroughtheirattorneys,EmeryCelliBrinckerhoff
&
AbadyLLP,fortheircomplaintallegeasfollows:
PRELIMINARYSTATEMENT
1.OnFebruary17,20I2,theGovernorsignedintostatelawChapter9oftheLawsof2012(Assembly8691AISenate6I18A)(the"Outer-boroughLaw")whichradicallyalteredthelicensingandregulatorysystemgoverningtheNewYorkCitymedalliontaxicabandfor-hirevehicleindustries.Rightsandprivilegesthathaveexistedforthetaxicabindustryfornearlyacenturyhavebeenabolishedwiththestrokeofapen,withoutasinglepublichearing,withoutauthorizationfromtheNewYorkCityCouncil,andwithoutanyenvironmentaloreconomicreview.TheprimarybeneficiariesofthenewschemewillbeaseJectclassof
 
licensees-liverydriversandowners-manyofwhomhaveopenlyviolatedlawsthathavebeenineffectformorethanfiftyyears.2.PlaintiffsseekadeclarationthattheOuter-boroughLawisunconstitutional.PlaintiffsalsoseekaninjunctionprohibitingDefendantsfromcarryingoutanyactsinfurtheranceoftheOuter-boroughLaw.3.TheOuter-boroughLawisaNewYorkStatelawregulatingNewYorkCitytaxicabsandliveries,whichwaspasseddespitethefactthattheNewYorkCityCouncilneverprovidedaHorneRulemessagesupportingthelawasrequiredbytheStateConstitution.
,
TheOuter-boroughLawprovidesfor18,000licenses("HAILlicenses"),whichpermitlicenseholderstoacceptstreethailsinNewYorkCityoutsideofManhattan'sCentralBusinessDistrict,usurpinglocallawspassedbytheNewYorkCityCouncil("CityCouncil"),whichpermitonlytaxicabdrivers-andnotliverydrivers-topickuppassengershailingvehiclesonthestreet.4.OnlyliverydriversandliveryvehicleownersspecifiedintheOuter-boroughLawmaypurchaseHAILlicenses(andonlybasesspecifiedinthelawmaylegallyaffiliatewiththelicenseholders).TheOuter-boroughLawalsopermitstheMayorofNewYorkCity("theMayor")andtheTLCtoauctionupto2,000taxicabmedallionsfortaxicabsaccessibletopersonswithdisabilitieswithoutCityCouncilauthorization,eventhoughNewYorkCity'sCharterrequirestheCityCounciltoapprovetheauctionofanytaxicabmedallions.Inaddition,thelawrequirestheNewYorkCityTaxiandLimousineCommission("TLC")toestablishagrantprogram,throughwhichpurchasersofaccessibleHAILvehiclesareeligibleforgrantsofupto$15,000perapplicant,foratotalcostashighas$54,000,000.00.ThesegrantswillcomefromthebudgetofNewYorkCity-notasinglestatedollarwillfundthestatelaw'smulti-milliondollargrantprogram.2
 
5.Aspassed,theOuter-boroughLawgoesbeyondmerelyauthorizingaformerlyprohibitedactivity.TheOuter-boroughLawrepresentsanattemptbyMayorMichaelR.Bloomberg("Bloomberg"),aidedbytheStateLegislature,tocircumventthelocallegislativeprocessandtheCityCouncil,whichdidnotsupportthesechangestothetaxicabandliveryindustries.Asaresult,theOuter-boroughLawgivesAssemblyMembersandStateSenatorsfromruralandsuburbanNewYorkStatemoresayoverliverycabsinQueensthantheQueensmembersoftheNewYorkCityCounciLMayorBloomberginitiallyproposedthislegislationinhis2011"StateoftheCity"address,andtheTLCatthattimeadmittedthatitcouldonlybecomelawifitgarneredsupportfromtheCityCouncil.Yetwhen
it
wasclearthatsuchsupportwouldnotbeforthcoming,MayorBloombergandhisstaffinitiatedaconcertedlobbyingefforttoconvincetheStateLegislaturetopasstheOuter-boroughLawwithoutCityCouncilapproval.6.NotwithstandingthelackofCityCOlIDC.ilpproval,theOuter-boroughLawrepresentsadrasticchangeintheregulationoftaxisandliveriesinNewYorkCity.The
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changethreatenstoirreparablydestroythetaxiandliveryindustriesthatfaithfullyservemorethanonemillionNewYorkerseveryday.Yetplaintiffshavebeenofferednorecourseandnocompensationforthisgovernmenttaking.7..Thislawauthorizesadrasticincreaseinthenumberofliverydriversandtaxicabsontheroads-indeed,thesinglelargestincreaseinthenumberofmedallionsissuedsince1937.Thelawalso,forthefirsttime,freelygrantstherighttopickuppassengersbystreethailstothousandsoflicenseeswhowillhavepaidvirtuallynothingfor
it.
Thisrighthasalwaysbeenexclusivetomedallionowners,whoeachhavepaiduptoonemilliondollarsforit.TheOuter-boroughLawisthuscontrarytothejustifiedexpectationsofmedallionholders,whohavereasonablyreliedonprovisionsoflawthatsecuretothemtheexclusivetherighttopickup3
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