248 So. 3d 449
La. Ct. App.2018Background
- Twenty-six taxi drivers ("Cabbies") sued thirty-one Uber drivers ("Ubers") under the Louisiana Unfair Trade Practices Act (LUTPA), alleging Ubers operated outside applicable regulations and siphoned taxi market share, causing lost income and other damages.
- The petition alleged specific ordinance and state-law violations (street hails, use of cab stands, airport fares, failure to report accidents/submit to drug tests, licensing and insurance requirements) and identified some dates and defendants.
- The Ubers filed peremptory exceptions of no cause of action; the trial court denied the exception as to the Second Amending, Supplemental and Restated Petition.
- This court (en banc) reviewed under de novo standard after the Louisiana Supreme Court remanded for full briefing and opinion.
- The majority held the petition stated a LUTPA cause of action (ascertainable loss alleged; unfair practices alleged); several judges dissented, raising concerns about class/representative relief, causation, and insufficient conspiracy pleading.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether petition states a LUTPA cause of action based on alleged regulatory and ordinance violations | Cabbies: Ubers’ violations of city ordinances/state rules constitute unfair trade practices causing ascertainable loss | Ubers: Allegations are conclusory, rely on regulatory violations that don’t create private LUTPA claims; failures go to merits | Majority: Petition states a cause of action under LUTPA; exception properly denied |
| Whether plaintiffs alleged an ascertainable loss | Cabbies: Alleged loss of income, market share, reputation, goodwill, and fees (amounts to be proven later) | Ubers: No specific quantified loss alleged; insufficient at pleading stage | Majority: Allegations suffice to plead ascertainable loss for pleading purposes |
| Causation and specificity as to individual defendants | Cabbies: Collective and example-based allegations show Ubers’ practices caused harm to Cabbies | Ubers: Plaintiffs failed to tie specific plaintiffs’ losses to specific defendants or acts; conclusory collective pleading inadequate | Dissent: Petition fails to plead causation for individual defendants; majority disagreed, treating merits as for later stages |
| Use of class/representative allegations (defendant class) | Cabbies: Sought to define defendant class of all UberX drivers in New Orleans (alleged to support broad claim) | Ubers: LUTPA precludes private representative/class actions; defendant-class claim inconsistent with statute | Majority: Not deciding class certification; observed LUTPA allows individual claims but class relief is a separate issue; dissent emphasized statutory bar and risk to LUTPA viability |
Key Cases Cited
- Farmco, Inc. v. W. Baton Rouge Par. Governing Council, 789 So.2d 568 (La. 2001) (exception of no cause of action—resolve doubts in plaintiff’s favor).
- Cheramie Servs., Inc. v. Shell Deepwater Prod., Inc., 35 So.3d 1053 (La. 2010) (elements of LUTPA claim: ascertainable loss caused by unfair/deceptive practices).
- Quality Envtl. Processes, Inc. v. I.P. Petroleum Co., Inc., 144 So.3d 1011 (La. 2014) (LUTPA violations determined case-by-case; practice must offend public policy/be egregious).
- 2400 Canal, LLC v. Bd. of Sup’rs of La. State Univ., 105 So.3d 819 (La. App. 4 Cir.) (exception of no cause of action—courts consider only petition and annexed documents; legal conclusions not accepted as facts).
- 831 Bartholomew Investments-A, L.L.C. v. Margulis, 20 So.3d 532 (La. App. 4 Cir.) (pleading facts required; mere conclusions insufficient).
- Jefferson v. Chevron U.S.A. Inc., 713 So.2d 785 (La. App. 4 Cir.) (distinguishing unfair and deceptive practices under LUTPA).
- JCD Mktg. Co. v. Bass Hotels & Resorts, Inc., 812 So.2d 834 (La. App. 4 Cir.) (LUTPA does not forbid legitimate competitive conduct; remedies limited to egregious means).
- Rasier, LLC v. City of New Orleans, 222 So.3d 806 (La. App. 4 Cir.) (distinguishing regulatory regimes for TNC drivers vs. taxi drivers).
