New York state’s top court, on April 27, threw out claims by yellow cab operators that NYC diminished the value of their taxi licenses by failing to rein in app-based competitors like Uber and Lyft. The New York Court of Appeals, in a unanimous ruling, said the city’s Taxi & Limousine Commission (TLC) never promised yellow cab companies that it would take steps to protect the value of their medallions.
The taxi operator said the value of the medallions they purchased in 2013 for an average of $1.3 million each fell by about 75% over the next few years as app-based services gained popularity. But the Court of Appeals affirmed a lower court ruling, saying the TLC was not bound to cap the number of app-based cars that could operate in the city when it sold medallions to cab companies.
Taxi company lawyers did not immediately respond to requests for comment. In their 2017 lawsuit, the companies said the TLC had breached its contracts with medallion owners by failing to cap the number of FHVs that could operate in NYC.
Source: Reuters
