Plаintiffs, a group of individuals, companies, credit unions, and trade associations affiliated with New York City’s medallion taxicab Industry, bring this action against the City of New York (the ‘“City”), the New York City Taxi & Limousine Commission (the “TLC”), and TLC Chair Meera Joshi (collectively, “Defendants”), alleging that certain TLC regulations contravene the Equal Protection, Due Process, and Takings Clauses of the United States Constitution and analogous provisions of the New York State Constitution. Plaintiffs also assert 'a claim sounding in common law fraud. Before the Court is Defendants’ motion to dismiss pursuant to Federal Rules of Procedure 12(b)(1) and 12(b)(6). For the reasons set forth below, the motion is GRANTED with respect to Plaintiffs’ federal claims, and the Court declines to exercise supplemental jurisdiction over the remaining state law claims.
I. BACKGROUND
A. The Parties
■Plaintiffs can be sorted into three groups. One group is composed of Melrose Credit Union, Progressive Credit Union, and LOMTO Federal Credit Union (the “Credit Union Plaintiffs”). Each of these entities is a federally insured, not-for-profit New York corporation that provides financing for taxicab medallions in New York City. See Amended Complaint, Dkt. No. 47 (“Compl.”), ¶¶ 50, 56, 62. Together, the Credit Union Plaintiffs hold security interests in thousands of taxicab medallions. Id. ¶¶ 51, 57, 63.
A second group consists of KL Motors, Inc., Safini Transport, Inc., FIMA Service Co., Inc., Carl Ginsberg, Joseph Itzchaky, and White & Blue Group Corp, (collectively, the “Medallion Plaintiffs”). These individuals and entities own TLC-issued taxicab medallions, which they often in turn lease to others. Id. ¶¶ 34, 38, 80-84, 105.
A third group consists of the Taxi Medallion Owner Driver Association, Inc. and the League of Mutual Taxi Owners, Inc. These entities are not-for-profit New York corporations that represent the interests of hundreds of taxicab medallion owners in New York City, and engage in advocacy concerning taxicab regulation. Id. ¶¶ 70-76.
Defendants, as noted, are the City; the TLC, which is the “charter-mandated agency, responsible for licensing and regulating [the City’s] taxicabs and liveries, and implementing transportation initiatives in a manner consistent with law,” id. ¶ 122; and Meera Joshi, “the Chair and Chief Executive Officer of the TLC,” id, ¶ 123.
B. Medallion Taxis and For-Hire Vehicles
According to the. Amended Complaint, the City’s for-hire ground transportation industry consists primarily of two segments that are subject to different regulations and accorded different privileges. Id. ¶ 5. One consists of the “traditional New York City medallion yellow taxicabs.” Id. ¶ 23. This group is defined by its ownеrship of a medallion, which is a license issued by the TLC that permits its owner to, inter alia, “operate a taxicab on the streets of New York,” “use the license as security for loans (which may include, but are not necessarily limited to purchase
The second industry segment pertinent here is composed of for-hire vehicles without TLC-issued medallions that are permitted to transport passengers in the City so long as they do “not solicit or pick up [p]assengers other than by prearrangement” (“FHVs”). Id. ¶ 134 (quoting 35 R.C.N.Y. § 55-19(a) (2015)). This group includes well-known companies such as Uber, Lyft, and Gett. Compl. ¶¶ 23-24, 179.
Plaintiffs allege that medallion owners who operate taxis must comply with a number of regulations imposed by the TLC regarding, among other things: fare rates, 35 Rules of the City of NY. (“R.C.N.Y”) § 58-26 (2017); surcharges, id. §§ 58-16(g), 58-03(x), 58-26(a)(3); and vehicle attributes, such as model, paint, finish, lighting, upholstery, seats, windows, air conditioner, roof lights, taximeters, partitions, camera systems, placement of credentials, and payment systems, id. §§ 67-04 to 67-15. See Compl. ¶ 15. Moreover, Plaintiffs allege, if a medallion owner leases out its taxicab, it must do so within the strictures of TLC-mandated “lease caps” and “shift change time limitations,” which together regulate the amount of time and money for which a medallion can be leased. Id. ¶ 257; see also 35 R.C.N.Y. § 58-21. Collectively, these regulations are hereafter referred to as the “Medallion Specific Rules.”
According to Plaintiffs, in exchange for operating under these allegedly “burdensome” regulations, medallion taxicabs are accorded, by statute, the “exclusive right to accept [street hails.]” Compl. ¶ 5. As defined by TLC regulation, a “hail” is
[a] request, either through a verbal (audio) action such as calling out, yelling, or whistling, and/or a visible physical action such as raising one’s hand or arm, or through an electronic method such as an E-Hail App, for on-demand Taxicab or Street Hail Livery service at the metered rate of fare as set forth in § 58-26 and § 82-26 of these Rules by a person who is currently ready to travel.
35 R.C.N.Y. § 51-03 (2017). The exclusivity of this right is currently protected by, inter alia, the New York City Administrative Code, which provides in pertinent part that “[n]o motor vehicle other than a duly licensed taxicab shall be permitted to accept hails from passengers in the street.” N.Y.C. Admin. Code tit, 19 § 504(a)(1) (2017); see also id. § 502(1) (“ ‘Taxi,’ ‘taxicab,’ or ‘cab’ mеans motor vehicle carrying passengers for hire in the city, designed to carry a maximum of five passengers, duly licensed as a taxi cab by the commission and permitted to accept hails from passengers in the street.”).
By contrast, Plaintiffs allege, FHVs may not accept street hails, but, correspondingly, are free from many of the regulatory burdens imposed on medallion owners, such as the Medallion Specific Taxicab Rules. FHVs are not, for example, subject to mandated fare rates, but instead file a rate schedule with the TLC. Compl. ¶¶ 136-37. Similarly, FHVs are not limited to particular vehicle models dictated by the TLC. Id. ¶¶ 141-42.
C. Promulgation of “E-Hail Rules” and the Alleged “Evisceration” of Hail Exclusivity
Plaintiffs allege that, notwithstanding the framework set forth above, there has been a “collapse of the regulatory structure governing for-hire transportation in New York City, brought about by the government-sanctioned proliferation of smart-phone technology being used by companies like Uber to bypass taxicab medallions and allow passengers to electronically hail a parallel network of unlicensed vehicles.” Id. ¶ 1. Plaintiffs aver that the key event in
According to Plaintiffs, the result of allowing FHVs to engage in e-hailing is that “Medallion taxicabs and companies such as Uber, Lyft and Gett clearly now operate on business models that are the same [as medallion taxicabs in] all material respects.” Compl. ¶ 187. Specifically, Plaintiffs allege that medallion taxicabs and FHVs using e-hail (1) serve the same “on demand travel” costumers, id. ¶ 185; (2) “create the same value for those customers,” id., as demonstrated by the fact that “passenger wait times” for e-hailing “have all but disappeared,” id. ¶ 218; (3) “transact sales in the same manner”—i.e., often through smartphones using credit card payments, id. ¶¶ 185, 193, 218; and (4) compete for the same drivers to operate their vehicles, id. ¶¶237, 279. Plaintiffs further allege that these developments have decreased the average medallion’s market value, id. ¶¶ 222-23, leasing value, see, e.g., id. ¶ 241, and meter revenue, id. ¶¶ 224-26.
To buttress these allegations, Plaintiffs marshаl statements purportedly made by Defendants that suggest, according to Plaintiffs, that they too believe that there is no material difference between a traditional street hail and an e-hail. For example, Plaintiffs allege that the City stated in a study that the “once-distinct regulatory categories are now blurring, and causing more direct competition for [medallion drivers].” Id. ¶ 191. Similarly, Plaintiffs allege that the Assistant General Counsel to the TLC stated in connection with the adoption of the E-Hail Rules that “[fjor those of you who might be unfamiliar, e-hailing allows a passenger to make a taxi-pickup request through his or her smart phone. Basically it extends a hand hail allowing taxi drivers to see around comers and increases fare opportunities.” Id. ¶ 167; see also id. ¶ 164 (alleging that the TLC stated in an unrelated court proceeding that “e-hail apps are just that; they’re hails. It’s somebody indicating that they want to be picked up ... within a prescribed area, without saying where they’re going, without saying their race or gender or color, without saying what the fare will be and how much it will be.”); id. ¶236 (alleging that the TLC stated that “[differential regulations for taxis compared to other cаtegories of for-hire vehicles limit traditional yellow taxis’ ability to compete effectively with e-dispatch services.”).
D. The “Accessible Conversion Rules”
In addition to the Medallion Specific Taxicab Rules and the E-Hail rules, Plaintiffs’ claims also implicate certain recently promulgated TLC regulations concerning
Plaintiffs also allege that the TLC implemented the Accessible Conversion Rules pursuant to a rulemaking that was initiated in connection with the settlement of ' a class - action civil rights lawsuit brought against it under a the Americans with Disabilities Act and the New York City Human Rights Law: Noel v. N.Y.C. Taxi & Limousine Comm’n,
II. PROCEDURAL POSTURE
Plaintiffs filed this suit on November 17, 2015. Dkt, No. 1. On December 29, 2015, Plaintiffs moved for a preliminary injunction, arguing principally that the Medallion Specific Rules and the Accessible Conversion Rules violate the Equal Protection Clause. Dkt. Nos. 19, 31, The Court denied that motion on the record during a hearing held on January 26, 2016. See Dkt. No. 43 (memorializing denial). Plaintiffs moved for
On March 7, 2016, Plaintiffs filed an Amended Complaint asserting three federal causes of action pursuant to 42 U.S.C. §§ 1983 and 1988 and seeking both injunc-tive and declaratory relief as well as compensatory, exemplary, and punitive damages. Comp. ¶¶ 310-27, 342-48, 368-77. First, Plaintiffs assert that the TLC rules and regulations discussed above, including the Medallion Specific Rules, contravene the Equal Protection Clause by imposing disparate burdens on participants in the medallion taxicab industry relative to purportedly similarly situated FHV companies, such as Uber and its competitors. Compl. ¶¶ 310-17. Second, Plaintiffs aver that the current TLC regulatory structure effects a taking without just compensation of their statutory right to hail exclusivity in violation of the Takings Clause of the Fifth Amendment. Compl. ¶¶ 318-19. And third, Plaintiffs allege that the TLC’s adoption of the Accessible Conversion Rules runs afoul of the Fourteenth Amendment’s Due Process Clause in purportedly “forcing” medallion owners to “convert” unrestricted medallions into accessible medallions without notice or a sufficient opportunity to be heard. Compl. ¶¶ 342-48. Plaintiffs also assert corresponding claims under the New York State Constitution and a claim for common law fraud. Compl. ¶¶ 328-41, 349-64.
On May 2, 2016, Defendants moved to dismiss the Amended Complaint in its entirety pursuant to Federal Rule of Procedure 12(b)(1) and 12(b)(6). Dkt. No. 58. Defendants advance multiple contentions in support of their motion, but principally argue (1) that Plaintiffs lack standing to maintain this action because they do allege concrete and particularized injury-in-fact sufficiently traceable to the Defendants’ alleged conduct, Defendants’ Memorandum of Law in Support of Defendants’ Motion to Dismiss the Amended Complaint, Dkt. No. 61 (“Defs.’ Mem.”) at 5-12; (2) that Plaintiffs’ claims are precluded under the dоctrine of res judicata, id. at 12-18; (3) that the claims are barred by the doctrine of laches, id. at 19-21; (4) that Plaintiffs’ federal takings claim is unripe, id. at 44-46; and (5) that each federal cause of action fails to' state a claim on which relief can be granted, id. at 21-44, 46-55. Defendants further urge the Court to decline to exercise supplemental jurisdiction over Plaintiffs’ state law claims. Id. at 55.
On November 22, 2016, this case was reassigned from the Honorable Analisa Torres to the undersigned.
III. STANDARD OF REVIEW
Defendants, as noted, seek dismissal under both Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). Pursuant to Rule 12(b)(1), a court must dismiss a claim if, among other things, it determines that the plaintiff lacks standing to prosecute it. Bldg. & Constr. Trades Council v. Downtown Dev., Inc.,
To survive a motion to dismiss brought under Rule 12(b)(6), “a complaint must contain sufficient factual matter, accepted
In resolving a motion under Rule 12(b)(6), a court must “accept all allegations in the complaint as true and draw all inferences in the non-moving party’s favor.” LaFaro v. N.Y. Cardiothoracic Grp., PLLC,
IV. DISCUSSION
Plaintiffs, as noted, assert three federal claims. The Court first addresses the threshold question, raised by Defendants, of whether the Plaintiffs have standing to prosecute such claims. Concluding that at least one Plaintiff does have standing, the Court then proceeds to consider Defendants’ claim-specific arguments in support of dismissal.
As set forth further below, the Court determines that the equal protection and due process counts must be dismissed for failure to state a claim, and that the takings claim is unripe. In light of these conclusions, the Court will decline to exercise supplemental jurisdiction over the remaining state law claims.
A. Federal Claims
1. Defendants’ Standing Challenge is Unavailing
As an initial matter, Defendants contend that Plaintiffs lack standing t(} prosecute their claims. Standing is “the threshold question in every federal case, determining the power of the court to entertain the suit.” Ross v. Bank of Am., N.A. (USA),
The Supreme Court has held in the context of multi-plaintiff constitutional challenges to legislative and regulatory actions that sufficient injury on the part of one plaintiff “is sufficient to confer standing under ... Article III.” Bowsher v. Synar,
Individual Plaintiff Itzchaky, one of the Medallion Plaintiffs, has adequately alleged such standing. Plaintiffs aver, among other things, that Itzchaky’s monthly medallion leasing income fell by approximately a third—from more than $3,000 to $2,100—directly following the passage of the E-Hail’Rules, “as leasing companies have been unable to attract enough drivers to lease all of the available medallion yellow taxicabs.” Compl. ¶ 117. They also allege that the “conversion” mandated by the Accessible Conversion Rules of Itzchaky’s medallion into an “accessible medallion”—with its attendant heightened operational costs and regulatory burdens—resulted in the “los[s] [of] all of his medallion income,”' rendered his medallion “worthless,” and prоmpted his leasing agent to “drop[ ],” him, id. ¶ 118. All told, Plaintiffs allege, Itzchaky has suffered financial harm in'an amount of at least $75,000, Id. ¶¶ 119-20.
Defendants characterize such allegations as unsubstantiated and speculative. Defs/'Mem. 10-11. On á motion to dismiss, however “general factual allegations of injury resulting from the defendant’s conduct may suffice,’” because the Court must “‘presume that general allegations embrace those specific facts that arre necessary to support-the claim.’” Carter,
2. Plaintiffs Fail to State an Equal Protection Claim
Plaintiffs’ federal equal protection claim is premised,.as noted, on the purported disparate regulatory burdens imposed on medallion taxicabs relative to otherwise similarly situated FHVs that use electronic hailing applications. Plaintiffs’ Memorandum of Law in Opposition to Defendants’ Motion to Dismiss the Amended Complaint, Dkt. No. 65 (“Pls.’ Opp’n”), at 74. According to Plaintiffs, even though FHVs are technically not permitted to pick up street hails, several, of these companies “serve the same customers, create the same value for those customers, transact sales in the same manner, deliver the same services, and use the same strategies to generate revenue” as traditional medallion taxicabs, but the latter are uniquely subject to, among other things, the purportedly stringent Medallion Specific Rules. Compl. ¶¶ 185, 310-17.
Where, as here, a plaintiff asserts an equal protection claim without alleging discrimination based on membership in a protected class, the plaintiff must plausibly allege, and later prove, that it has “been intentionally-treated differently from others similarly situated and that there is no rational basis for the difference in treatment.” Village of Willowbrook v. Olech,
When rational basis scrutiny applies—as Plaintiffs concede it does here— effective “classifications” in statutes “bear[ ] a strong presumption of validity,” and “those'attacking the rationality of the legislative classification have'the burden to negative every conceivable basis which might support it.” FCC v. Beach Comm’ns,
Although the Second Circuit has yet to clarify precisely how to apply these principles at the motion to dismiss stage, several Circuits—as observed by at least one court in this District—have determined, straightforwardly, that “[t]he solution .to the challenge of conducting rational basis review at the motion to dismiss stage ... is to take as true all of the complaint’s allegations and reasonable inferences that
Here, even taking the allegations at bar as true and drawing all reasonable inferences for the Plaintiffs, the Amended Complaint itself identifies differences in circumstance that constitute a legally rational basis for the Defendants’ disparate regulatory treatment of medallion taxicabs and FHVs—and Plaintiffs fail to negate that basis. Specifically, and as discussed above, under New York State and City law, medallion taxicabs are undisputedly the only vehicles permitted to accept spontaneous street hails from customers seeking immediate ground transportation. e.g., Compl. ¶ 5; N.Y.C. Admin. Code tit. 19 § 504(a)(1) (2017). The importance of this fundamental distinction in circumstance is in no way negated by allegations that these two groups may otherwise share certain characteristics, such as operating similar business models and providing similar services. See, e.g., Comp. ¶¶ 185, 193, 218, 237, 279; see also Prestopnik v. Whelan,
This core distinction provides more than sufficient justification for the challenged TLC regulations, which may well promote safety, comfort, convenience, ready identification and accessibility, and uniformity of service ‘in an industry characterized by spontaneous hails featuring no prearrangement or preexisting customer-company relationship. See Defs.’ Mem. 31-41 (articulating nondiscriminatory bases for regulations). For example, it is readily conceivable that Defendants rationally determinеd, or speculated, that vehicle-specifications such as the Accessible Conversion Rules and the requirements for standardized vehicle attributes promote passenger safety and convenience and vehicular accessibility. See 35 R.C.N.Y §§ 67:04-15; see also Beach Comm’ns,
The City’s for-hire ground transportation industry—like its analogues in other parts of the country and the world—may well, as Plaintiffs allege, be rapidly evolving. And a notable feature of that evolution may indeed be that the Ubers and Lyfts of the world increasingly share important characteristics with traditional medallion taxicabs, including, as identified by Plaintiffs, the customers they serve, the drivers they employ, the manner in which they transact sales, and even the immediacy with which their services are delivered. See, e.g., Compl. ¶¶ 185, 193, 218, 237, 279. But marshaling such similarities risks obscuring persistent (and undisputed) differences in the manner in which these industry participants interact with and relate to their consumers. One set responds, by virtue оf a government-created monopoly, to spontaneous street hails by people with whom they have no preexisting contractual relationship and the pick-up takes place with no information (for example, names, vehicle type) having yet been formally exchanged. The other responds, pursuant to a preexisting company-customer contract, to remotely transmitted electronic hails and the pick-up takes place following at least' a minimal exchange of information. Such differences,
Other courts have, as noted above, reached substantially the same conclusion. Indeed, as Judge Gorton of the District of Massachusetts observed in a recent decision, “respected jurists” representing multiple jurisdictions have almost “uniformly dismissed” equal protection claims brought by taxicab industry participants of the sort at issue here. See Boston Taxi Owners,
For these reasons, the Court concludes that Plaintiffs fail to plausibly allege that there is no rational basis for the difference in treatment complained of, and, accordingly, Defendants’ motion to dismiss Plaintiffs’ equal protection claim is GRANTED.
3. Plaintiffs’ Federal Takings Claim is Unripe for Adjudication
Plaintiffs’ Fifth Amendment takings claim is based on allegations, discussed above, that the TLC’s adoption of the E-Hail Rules has effectively deprived Plaintiffs of their purported “statutory right to hail exclusivity’ without just compensation. Compl. ¶¶ 319-27. Defendants contend that this claim is unripe for judicial review. The Court agrees.
In Williamson County Regional Planning Commission v. Hamilton Bank of Johnson City,
Plaintiffs here allege that the Credit Union Plaintiffs commenced a proceeding in New York Supreme Court against Defendants, among others, pursuant-to Article 78 of the New York Civil Practice Law and Rules '(-“CPLR”),‘seeking to “uphold the meaning of hail exclusivity.” They further allege that their petition was dismissed and that thereafter they were denied leave to renew.. Compl. ¶¶ 174-76; see Melrose Credit Union v. City of New York, No. 6443/15,
As an initial matter, the Court easily concludes that New York provides at least one “reasonable, certain and adequate provision for obtaining compensation” within the meaning of Williamson County. Tracking the Fifth Amendment to the U.S. Constitution, Article I, Section 7 of the New York State Constitution guarantees that “private property shall not be taken for public use without just compensation.” Several courts in this Circuit have determined that 'the availability of inverse condemnation actions under that provision
If that were not enough, the New York Court of Appeals has expressly recognized that just compensation is available under Article I, Section 7 in the context not only of regulatory takings in general, see, e.g., 520 E. 81st St. Assoc. v. State of N.Y.,
Plaintiffs, of course, do not allege that they pursued compensation via that mechanism in state court. They allege only, as noted, that the Credit Union Plaintiffs instituted an Article 78 proceeding against Defendants and argue, in sum and substance, that, to the extent New York maintains any adequate procedure for seeking just compensation in response to a regulatory taking, the dismissal of that Article 78 proceeding exhausted it. Bracketing the question—briefed at some length by the parties—of whether,:in light of the rules governing damages available in Article 78 proceedings, such a proceeding could ever yield just compensation for purposes of Williamson County, Plaintiffs’
The Court is mindful that the Second Circuit has recognized in a brief per cu-riam decision that an Article 78 proceeding may, in certain circumstances, potentially constitute a “constitutionally sufficient” procedure to address a takings claim at the state level. See Vandor,
For these reasons, the Court determines, as a matter of law, that (1) New York provides a procedure for obtaining just compensation that satisfies Williamson County, (2) Plaintiffs, by their own allegations, have not attempted to secure compensation via that procedure, and (3) the state proceeding on which Plaintiffs exclusively premise the ripeness of their federal takings claim asserted here is inadequate for failure to seek just compensation, See Williamson Cty. Reg. Planning Comm’n,
4. Plaintiffs Fail to State a Procedural Due Process Claim
The Court turns next to Plaintiffs’ procedural due process claim. Plaintiffs allege, as noted, that the TLC’s adoption of the Accessible Conversion Rules effected a “forced conversion” of the previously unrestricted medallions—such as those owned by the Medallion Plaintiffs and those in which the Credit Union Plaintiffs hold security interests—into so-called “accessible medallions” without sufficient notice or a meaningful opportunity for Plaintiffs to be heard. See, e.g., Compl. ¶¶ 34, 71, 118, 342-48.
The Fourteenth Amendment requires that “[n]o state shall ... deprive any person of ... property, without due process of law.” “In order to assert a
Defendants contend primarily that Plaintiffs do not plausibly allege a cognizable property interest and, in any event, fail to allege a meaningful opportunity to be heard. Defs.’ Mem. 51-55. The Court agrees.
First, an unremarkable proposition: critical to the Court’s analysis of Defendants’ first argument (that there is no constitutionally protected property interest at issue) is determining precisely what property Plaintiffs purport to have lost. Nothing in the Amended Complaint suggests that the promulgation of the Accessible Conversion Rules, or any other regulations implicated in this lawsuit, has resulted in, or imminently will result in, any literal, physicаl deprivation or substitution of Plaintiffs’ medallions or vehicles. Rather, it is evident to the Court, Plaintiffs seek to protect some intangible right or privilege allegedly attendant on their medallions (or the medallions in which they hold security interests). Defendants, for their part, seek to characterize the claimed property interest as based on the market value of the Plaintiffs’ medallions. Defs.’ Mem. 51-52. Plaintiffs resist this framing of the issue, arguing—it would seem—that it is the purported “forced conversion” of unrestricted medallions into accessible medallions that, in of itself, constitutes the deprivation of property. Pls.’ Opp. 107-08. Indeed, Plaintiffs expressly assert in their opposition papers that “they are not claiming to have a protected property interest in the market value of the medallions.” Id.
Plaintiffs make little, if any, effort to flesh out the distinction they seek to draw, and, indeed, it is repeatedly belied by the allegations of the Amended Complaint. For example, the Amended Complaints describes the effect of the Accessible Conversion Rules as follows:
[T]he Accessible Conversion Rules effectively converted the unrestricted medallion—ie., a mеdallion that was never required to be placed on an accessible' vehicle—into a restricted medallion— ie., a medallion that is required to be placed on an accessible vehicle on an alternative basis. Because accessible medallions are far less valuable than unrestricted medallions, Defendants have effectuated a complete taking of the difference in value between the independent unrestricted medallion and the independent accessible medallion.
Compl. ¶ 148 (emphasis added). It further alleges that
[T]he TLC was at all times aware that unrestricted medallions were more valuable, particularly since the TLC was responsible for determining the fair market value of each medallion.By adopting the Accessible Conversion Rules, the TLC has knowingly and deliberately devalued Credit Union Plaintiffs’ unrestricted medallion collateral and impaired their security interest in those medallions.
Compl. ¶ 160 (emphasis added). Time and again, the Amended Complaint fails to identify any harm wrought by the Accessible Conversion Rule's other than the diminution in their value as collateral for loans and the decrease in lease payments flowing to Medallion Plaintiffs as result of the purported burden imposed by the Rules. See, e.g., id. ¶¶ 159 (“[Bjecause of the new Accessible Conversion Rules, [Plaintiffs] are being forced to convert those otherwise more valuable unrestricted medallions into less valuable and more burdensome accessible medallions.”), 60, 240-41.
That Plaintiffs consistently reference a forced “conversion” is Qf no particular moment, As .the allegations again themselves makes clear, the “conversion” complained of is an “effective[] conversion].” Id. ¶ 148. That is, Plaintiffs are not—by the Amended Complaint’s own admission—actually being compelled to exchange one piece of property for another, Rather, Plaintiffs’ allege in substance that the economic benefits of owning a particular piece of property are being adversely effected by regulations undisputedly affecting the entire medallion taxicab industry. Put differently, .the market value of their property is allegedly being impaired. Plaintiffs’ opposition papers do not identify or suggest 'any interest in their medallions avoiding “conversion” untethered from an interest in the medallions’ economic value, and, notably, they cite zero authority for rеcognizing any such interest. Thus, the Court construes Plaintiffs’ asserted property interest—them self-serving “conversion” metaphor notwithstanding—as an interest in the value of their medallions.
And that is an interest that courts across the country, including in several of the decisions discussed above, have resoundingly declined to afford constitutional protection. See, e.g., Minneapolis Taxi Owners Coal. v. City of Minneapolis,
A central rationale underlying these uniform conclusions is that whatever interest the owner of a taxicab medallion or license holds in that item is fundamentally the product of what is in many, or even most, jurisdictions a pervasive regulatory scheme that “vests the City with broad discretion to alter or extinguish that interest.” Dennis Melancon,
Accordingly, the Court concludes that Plaintiffs’ only plausibly asserted property interest in the medallions—their economic value—is not entitled to constitutional protection and therefore cannot support a due process claim,
In any event, even if Plaintiffs were able to allege a cognizable property interest, they also fail to plead facts that, if proven, could support a conclusion that they were denied any process with respect to the alleged deprivation of those interests. As the Supreme Court has long recognized in the due process context, “[t]he formality and procedural requisites for [the relevant] hearing can vary, depending upon the importance of the interests involved and the nature of the subsequent proceedings,” but the opportunity to be heard remains the Constitution’s “root requirement.” Boddie v. Connecticut,
Here, quite simply, Plaintiffs allege no facts whatsoever regarding the process by which the Accessible Conversion Rules were promulgated, instead averring only that the relevant rulemaking “arose” out of the settlement of the Noel litigation noted above. See Compl. ¶¶ 145 & n.8, 342-48. The Court is aware of no authority, and Plaintiffs identify none, suggesting that the mere fact that a regulatory agency initiates a rulemaking in response to civil rights litigation necessarily renders the resulting process procedurally inadequate for constitutional purposes. To be sure, Plaintiffs conclusorily assert that they were denied “notice or the opportunity to be heard” in connection with the rulemak-ing, Compl. ¶ 344, but such assertions are the archetypal “legal conclusion[s] couched as ... factual allegation^]” that the Court is not bound to accept, even at the pleadings stage. Twombly,
For all of these reasons, Defendants’ motion to dismiss the due process claim is GRANTED.
B. State Law Claims
Having disposed of all of Plaintiffs’ federal claims, the Court declines to exercise supplemental jurisdiction over Plaintiffs’ remaining state law claims. See In re Merrill Lynch Ltd. P’ships Litig.,
V. CONCLUSION
For the foregoing reasons, the Defendants’ motion to dismiss Plaintiffs’ federal claims is GRANTED,, and the Court declines to exercise supplemental jurisdiction over the state law claims. The Clerk of Court is respectfully directed to terminate the motion at Dkt. No. 58 and to close this case.
SO ORDERED.
Notes
. Unless otherwise noted, the facts set forth herein are taken from Plaintiffs' Amended Complaint, as well as exhibits attached thereto, and assumed to be true for purposes of this motion.
. Plaintiffs describe Uber's platform, for example, as follows: "passengers wishing to use Uber simply download the smartphone application, create an account, and input credit card information. Once logged into the application, passengers are provided with a map showing the lоcation of available cars and the approximate travel time of the closest car to the passenger's location. When a passenger electronically hails an Uber FHV-, the application sends the request directly to the closest available driver who must then accept or decline the request. If the Uber driver declines the request, it is then automatically forwarded to the next closest driver.” Compl. ¶ 125.
. The details of the lottery system are not directly relevant to Plaintiffs' claims, as Plaintiffs do not challenge the legality of the lottery itself, but rather—as discussed further below—the process whereby the Accessible Conversion Rules were passed. For a decision addressing the legality of -the lottery, see Singh v. Joshi,
. The Court notes that it is aware of at least two district courts that have reached different conclusions. One of those rulings, however, was overruled, see Illinois Trans. Trade Ass’n v. City of Chicago,
. Because the Court resolves Defendants’ motion to dismiss Plaintiffs' federal claims on the grounds discussed above, it need not and does not reach or address Defendants' contentions that this action should be dismissed on the basis of res judicata and/or the doctrine of laches, both of which are affirmative defenses on which Defendants would bear the burden of persuasion. See Scherer v. Equitable Life Assurance Soc’y of U.S.,