I. PRELIMINARY STATEMENT
The Nassau and Suffolk County Taxi Owners Association, Inc. ("NSTOA"), along with its members, licensed taxicab companies Lindy's Fleet Service, Inc., EOLA Management, Corp., d/b/a All Island Transportation of Mineola, David Bros., Inc., d/b/a David Enterprises, North Shore Transportation Services, Inc., and Colonial Transportation of Long Island, Inc., (collectively, "Plaintiffs") bring this action against the State of New York, Governor Andrew Cuomo, and Commissioner of the New York State Department of Motor Vehicles Theresa Egan (collectively, "Defendants"). Plaintiffs challenge the constitutionality of recently enacted legislation authorizing the Department of Motor Vehicles ("DMV") to license and regulate transportation network companies ("TNC") such as Lyft and Uber. Plaintiffs allege that New York's legislative scheme "has created a two-tiered system that violates Plaintiffs' rights to Equal Protection without a rational basis for such distinction" by creating an "arbitrary distinction
Presently before the Court
II. BACKGROUND
A. Factual Background
The Court takes the following facts from Plaintiffs' Amended Complaint and the documents attached to it, and accepts Plaintiffs' well-pleaded factual allegations as true for purposes of the instant motion. Aegis Ins. Servs., Inc. v. 7 World Trade Co., L.P. ,
The Court notes that Plaintiffs have attached as an exhibit to their Amended Complaint the text of the statutory provision at issue in this case, Article 44-B of the New York Vehicle and Traffic Law ("Article 44-B"). See generally Am. Compl, Ex. 1. Although not explicitly incorporated into the body of the Amended Complaint, the Court may properly consider the text of Article 44-B and the Session Laws enacting it -- neither of which is disputed -- as attachments to Plaintiffs' pleading and as matters of legislative record. Romero v. Bestcare Inc. , No. 15-CV-7397,
1. Article 44-B of the Vehicle and Traffic Law
On April 10, 2017, Governor Cuomo signed into law Assembly Bill 3009C/Senate Bill 2009C as Chapter 59 of the Laws of 2017, which implemented parts of the 2017-18 New York State budget. Am. Compl. ¶ 1. Part AAA of Chapter 59 created a new Article 44-B of the New York Vehicle and Traffic Law ("VTL") regulating TNC services, which include ride-sharing services provided by companies like Uber and Lyft.
Article 44-B defines a "TNC vehicle" as a vehicle
(a) used by a transportation network company driver to provide a TNC prearranged trip originating within the state of New York; and
(b) owned, leased or otherwise authorized for use by the transportation network company driver;
(c) such term shall not include:
(i) a taxicab, as defined in section one hundred forty-eight-a of this chapter and section 19-502 of the administrative code of the city of New York, or as otherwise defined in local law;
(ii) a livery vehicle, as defined in section one hundred twenty-one-e of this chapter, or as otherwise defined in local law;
(iii) a black car, limousine, or luxury limousine, as defined in section 19-502 of the administrative code of the city of New York, or as otherwise defined in local law;
(iv) a for-hire vehicle, as defined in section 19-502 of the administrative code of the city of New York, or as otherwise defined in local law;
(v) a bus, as defined in section one hundred four of this chapter;
(vi) any motor vehicle weighing more than six thousand five hundred pounds unloaded;
(vii) any motor vehicle having a seating capacity of more than seven passengers; and
(viii) any motor vehicle subject to section three hundred seventy of this chapter.
a person, corporation, partnership, sole proprietorship, or other entity that is licensed pursuant to this article and is operating in New York state exclusively using a digital network to connect transportation network company passengers to transportation network company drivers who provide TNC prearranged trips.
(a) "TNC prearranged trip" or "trip" means the provision of transportation by a transportation network company driver to a passenger provided through the use of a TNC's digital network:
(i) beginning when a transportation network company driver accepts a passenger's request for a trip through a digital network controlled by a transportation network company;
(ii) continuing while the transportation network company driver transports the requesting passenger in a TNC vehicle; and
(iii) ending when the last requesting passenger departs from the TNC vehicle.
(b) The term "TNC prearranged trip" does not include transportation provided through any of the following:
(i) shared expense carpool or vanpool arrangements, including those as defined in section one hundred fifty-eight-b of this chapter; and
(ii) use of a taxicab, livery, luxury limousine, or other for-hire vehicle, as defined in this chapter, section 19-502 of the administrative code of the city ofNew York, or as otherwise defined in local law.
2. Plaintiffs' Allegations
Plaintiffs contend that Article 44-B imposes a less onerous regulatory burden on TNCs than the regulatory burden labored under by Plaintiffs and others in the taxi industry, and that this disparity constitutes a violation of Plaintiffs' equal protection rights. See generally Am. Compl. ¶¶ 9-42. As the Amended Complaint avers,
Plaintiffs and other similarly situated local Nassau and Suffolk for-hire transportation companies will still be subject to the extensive costs and time consuming licensing procedures set forth in the plethora of regulations required in order to provide the exact same services to passengers. By imposing more onerous burdens on the taxi industry, as compared to TNCs, this Law is in violation of the Equal Protection Clause of the Constitution as both businesses engage in the same business model - for-hire transportation and as such the same are similarly situated.
The majority of Plaintiffs' Amended Complaint is focused on highlighting the disparities in the legal requirements applied to TNCs under Article 44-B vis-à-vis the legal requirements to which Plaintiffs and other taxicab companies must adhere. A brief summary of the areas of regulatory disparity as asserted by Plaintiffs is appropriate here. Plaintiffs allege that "Article 44-B now provides for more lenient safety standards for TNCs than taxicab companies." Am. Compl. ¶ 13. Specifically, Plaintiffs state that registration of a vehicle with the Nassau County Taxi and Limousine Commission requires drivers to undergo a state approved, fingerprint-based background check, drug test, and DMV certified defensive driving course.
Plaintiffs also point out the myriad local laws with which they and other traditional taxi companies must comply. "In Suffolk County, there are regulations requiring taxi operators to register with all local Town and County municipalities .... Each of these jurisdictions provides specific laws with costs and expenses of licensing that range in cost but average between $150.00 - $300.00 per year, per vehicle, with similar costs per driver." Am. Compl. ¶ 21. Additionally, "in Suffolk County some for-hire transportation companies and drivers are required to register with the
Plaintiffs also underscore the disparity in insurance requirements between Article 44-B and the laws applicable to traditional taxi operators. Each local municipality requires Plaintiffs "to maintain a certain level of automobile insurance on its vehicles which will cover the driver, passengers, pedestrians and any other third party in the event of an accident. The cost of this insurance in Nassau and Suffolk County can average between $6,000.00 - $7,000.00 per year, per vehicle." Am. Compl. ¶ 25. By contrast, "Article 44-B now permits a brand new and unique custom-made insurance requirement for TNCs designed to save them money. In essence, the law requires the TNC to obtain a 'blanket policy' which only covers the drivers when they are logged on to the TNC's app."
The result of the regulatory disparities between the laws applicable to taxi operators and Article 44-B is, according to Plaintiffs, a significant and unfair competitive advantage for TNCs:
There are numerous disparities in treatment of taxi companies and TNCs. The fact is that each of these separate requirements have an economic impact on the company and drivers which affect the fares they are required to charge their riders. Such arbitrary favoritism damages the Plaintiffs by reducing their revenues. It also seriously handicaps their ability to compete fairly against the TNC [ ] companies to recruit drivers, which threatens to destroy their business entirely.
Am. Compl. ¶ 37.
B. Relevant Procedural History
Plaintiffs commenced this action on June 27, 2017. The initial complaint named the State of New York as the sole Defendant and asserted a single claim for violation of Plaintiffs' equal protection rights. See generally DE 1. Plaintiffs' initial complaint also contained a request for a preliminary injunction, enjoining enforcement of Article 44-B, see DE 1 ¶ 74, as well as an application for a temporary restraining order. See DE 2. On June 30, 2017, Judge Wexler held a show cause hearing after which he denied Plaintiffs' application for a temporary restraining order. See DE 9. On July 21, 2017, after hearing argument on Plaintiffs' fully-briefed motion for a preliminary injunction, Judge Wexler denied that
On the same day, the State of New York filed a letter application for permission to move to dismiss the complaint, see DE 28, which Plaintiffs opposed. See DE 29. Judge Wexler waived his pre-motion conference requirement and authorized the State to move forward with the motion to dismiss. See Electronic Order dated August 15, 2017. On October 31, 2017, prior to the filing of the State's motion to dismiss, Plaintiffs filed a motion to amend their complaint. See DE 37. Judge Wexler found the motion moot since Plaintiffs were entitled to amend their complaint as of right under Federal Rule of Civil Procedure 15(a)(1)(B). He also found the unfiled motion to dismiss moot in light of Plaintiffs' proposed amendment. See Electronic Order dated October 31, 2017. Plaintiffs filed their Amended Complaint on November 3, 2017. See DE 38.
On December 6, 2017, the State of New York filed a letter request to move to dismiss Plaintiffs' Amended Complaint. See DE 42. Plaintiffs did not file a response to the State's letter request, and on December 20, 2017, Judge Wexler again waived his pre-motion conference requirement and authorized Defendants to move forward with their motion to dismiss the Amended Complaint. See Electronic Order dated December 20, 2017. Defendants filed the instant motion to dismiss with Plaintiffs' opposition on February 23, 2018. See DE 46-48.
On March 29, 2018, the parties consented to the jurisdiction of this Court for all purposes, pursuant to
III. DISCUSSION
A. Preliminary Issues
1. Supplemental Documents Filed with the Motion Papers
Initially, the Court points out that both Plaintiffs and Defendants have submitted, in addition to memoranda of law, affirmations in support of their respective positions as well as exhibits attached to those affirmations which contain supplemental materials. See DE 46-48. As a general matter, where a party moves pursuant to Rule 12 and "matters outside the pleadings are presented to and not excluded by the court, the motion must be treated as one for summary judgment under Rule 56." FED. R. CIV. P. 12(d) ; see Wrap-N-Pack, Inc. v. Eisenberg , No. 04-cv-4887,
2. Defining Plaintiffs' Claim
Plaintiffs' Amended Complaint purports to assert two causes of action. The first, titled "EQUAL PROTECTION ( U.S. CONST., AMEND. XIV )," alleges that Article 44-B of the VTL violates Plaintiffs' rights under the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution. Am. Compl. ¶¶ 60-79. The Second, titled "(Violation of
Section 1983"is not itself a source of substantive rights, but a method for vindicating federal rights elsewhere conferred by those parts of the United States Constitution and federal statutes that it describes." Baker v. McCollan,
3. Bases for Defendants' Motion to Dismiss
Having determined the contours of Plaintiffs' claim, the Court must next assess the bases for Defendants' motion. This analysis is necessary because, although not elucidated in their motion papers,
Defendants argue that Plaintiffs' Amended Complaint should be dismissed for six reasons: (1) the Eleventh Amendment to the United States Constitution bars Plaintiffs' claim against the State of New York and the Individual Defendants in their official capacities; (2) Plaintiffs' equal protection claim fails as a matter of law; (3) any claim brought pursuant to Article IV of the United States Constitution fails as a matter of law; (4) the Individual Defendants are entitled to qualified immunity; (5) Plaintiffs have failed to join necessary parties; and (6) Plaintiff NSTOA lacks standing to bring the instant action. See generally Defs.' Mem. While arguments (2), (3), and (4) are properly construed as requesting dismissal pursuant to Rule 12(b)(6) for failure to state a claim, the Court construes arguments (1) and (6) as requesting dismissal pursuant to Rule 12(b)(1)
Where, as here, a defendant moves for dismissal of a pleading under Rule 12(b)(1) as well as on other grounds, "the court should consider the Rule 12(b)(1) challenge first since if it must dismiss the complaint for lack of subject matter jurisdiction, the accompanying defenses and objections become moot and do not need to be determined." Rhulen Agency, Inc. v. Alabama Ins. Guar. Ass'n ,
1. Standard of Review
"A case is properly dismissed for lack of subject matter jurisdiction under Rule 12(b)(1) when the district court lacks the statutory or constitutional power to adjudicate it." Makarova v. United States ,
2. Eleventh Amendment Immunity
Defendants argue that "Plaintiffs' claim brought pursuant to
a. Legal Principles
The Eleventh Amendment to the United States Constitution provides as follows:
The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State.
U.S. CONST. amend. XI. "The Eleventh Amendment bars federal courts from entertaining suits brought by private parties against a state in its own name." Peterson v. Tomaselli ,
There are three well-recognized exceptions to this rule. First, a state may waive its Eleventh Amendment immunity defense and consent to suit. Ahmed v. City Univ. of New York , No. 15-CV-7375,
It is the third exception that is relevant to Defendants' motion. In addition to consent and congressional abrogation, "under the Ex parte Young doctrine, the Eleventh Amendment does not bar a 'suit against a state official when that suit seeks ... prospective injunctive relief.' "
"In determining whether the doctrine of Ex parte Young avoids an Eleventh Amendment bar to suit, a court need only conduct a 'straightforward inquiry into whether [the] complaint alleges an ongoing violation of federal law and seeks relief properly characterized as prospective.' " Verizon Maryland, Inc. v. Pub. Serv. Comm'n of Maryland ,
In addition to Eleventh Amendment immunity principles and the doctrine of Ex parte Young , the instant analysis requires an awareness that "official-capacity suits generally represent only another way of pleading an action against an entity of which an officer is an agent," such that "[s]uits against state officials in their official capacity [ ] should be treated as suits against the State." Hafer v. Melo ,
b. Application
Defendants argue that Plaintiffs' claim against the Individual Defendants in their official capacities is barred by the Eleventh Amendment because "[w]hen injunctive relief is sought, any state official sued in his official capacity is a superfluous party when the State itself is a named defendant. Thus, the individual defendants cannot be sued here in their official capacities." Defs.' Mem. at 9. The contention here is that Eleventh Amendment immunity
Defendants misapprehend the law. For purposes of determining whether Ex parte Young circumvents Eleventh Amendment immunity, the Court need not analyze the merits of a claim. Rather, "a court need only conduct a 'straightforward inquiry into whether [the] complaint alleges an ongoing violation of federal law and seeks relief properly characterized as prospective.' " Verizon Maryland, Inc. ,
The Fourth Circuit suggested that Verizon's claim could not be brought under Ex parte Young, because the Commission's order was probably not inconsistent with federal law after all.240 F.3d at 295-297 .... It may (or may not) be true that the FCC's since-vacated ruling does not support Verizon's claim; it may (or may not) also be true that state contract law, and not federal law as Verizon contends, applies to disputes regarding the interpretation of Verizon's agreement. But the inquiry into whether suit lies under Ex parte Young does not include an analysis of the merits of the claim. See Coeur d'Alene,supra, at 281,("An allegation of an ongoing violation of federal law ... is ordinarily sufficient" (emphasis added) ). 117 S.Ct. 2028
However, there is an additional factor which must be satisfied in order for Plaintiffs' claim against the Individual
Defendant Commissioner Egan is the Executive Deputy Commissioner of the New York State Department of Motor Vehicles. Article 44-B of the VTL provides that "[a] TNC may not operate in the state of New York without first having obtained a license issued by the department in a form and manner and with applicable fees as provided for by regulations promulgated by the commissioner."
Governor Cuomo, on the other hand, is not referenced in his capacity as Governor anywhere in the statute, and it does not appear that his office has any particular enforcement authority over TNCs under Article 44-B. Nor does Plaintiffs'
Similarly barred is Plaintiffs' claim against the State of New York. See Winokur ,
Lastly, Plaintiffs' claim against Governor Cuomo and Commissioner Egan in their individual capacities cannot proceed for two related reasons. First, since Plaintiffs are not seeking money damages but only prospective relief, a suit against the Individual Defendants in their individual or personal capacities is improper. That is to say, it is only Commissioner Egan in her official capacity who can afford Plaintiffs the relief they seek should the Court order it. See Kuck ,
3. Standing of NSTOA
Defendants also argue that "NSTOA cannot succeed on the merits because it lacks standing to even bring the action." Defs.' Mem. at 21. According to the Defendants, an organization such as NSTOA "does not have standing to vindicate the rights of [its] members under Section 1983 unless it falls within the limited exception regarding an alleged violation of a First Amendment right to freely associate." Id. at 22. Because this action does not implicate the First Amendment right to free association, Defendants argue, NSTOA lacks standing. Id. Defendants also claim Plaintiffs have failed to allege that NSTOA performs independent functions which are sufficiently harmed by Article 44-B to establish standing in NSTOA's own right (as opposed to on behalf of its members) under Article III principles. See Defs.' Reply at 7-8.
a. Legal Principles
"[A]n association may have standing to assert the claims of its members even where it has suffered no injury from the challenged activity." N. Am. Olive Oil Ass'n v. D'Avoilio Inc. , No. 16-CV-06986,
However, the Second Circuit has instructed that when an organization brings suit under Section 1983 for alleged constitutional violations, it must do so on its own behalf, rather than on behalf of its members.
The constitutional prerequisites for standing emanating from the case-or-controversy requirement of Article III of the United States Constitution are well known. As the Supreme Court stated in Lujan v. Defenders of Wildlife ,
the core component of standing is an essential and unchanging part of the case-or-controversy requirement of Article III.
Over the years, our cases have established that the irreducible constitutional minimum of standing contains three elements. First, the plaintiff must have suffered an "injury in fact"-an invasion of a legally protected interest which is (a) concrete and particularized, and (b) "actual or imminent, not conjectural' or hypothetical[.]" Second, there must be a causal connection between the injury and the conduct complained of-the injury has to be "fairly ... trace[able] to the challenged action of the defendant, and not ... th[e] result [of] the independent action of some third party not before the court." Third, it must be "likely," as opposed to merely "speculative," that the injury will be "redressed by a favorable decision."
b. Application
On the issue of NSTOA's standing, Defendants have the stronger argument here. Defendants are correct that in this Circuit, an organization generally does not have standing to vindicate the constitutional rights of its members pursuant to Section 1983. Moreover, because the instant action does not implicate the First Amendment right to freedom of association, NSTOA is not entitled to the limited exception to the bar on Section 1983 organizational standing that the Second Circuit has recognized when the right to freedom of association is in play. See Aguayo ,
Since it is unable to establish organizational standing, NSTOA would need to point to allegations sufficient to satisfy the well-developed principles of Article III standing on its own. The Court finds that NSTOA has not done so. The extent of Plaintiffs' allegations with respect to NSTOA is that the organization "is an association of licensed taxicab owners that conduct business on Long Island, New York within both Nassau and Suffolk Counties. The association was formed in 1997 and its members own and operate more than 1,000 taxicabs throughout Nassau
While the Second Circuit has "recognized that only a 'perceptible impairment' of an organization's activities is necessary for there to be an 'injury in fact,' "
C. Dismissal Pursuant to Rule 12(b)(7)
Defendants argue that Uber, Lyft, and individual TNC drivers "have actually been operating throughout Long Island and the State at large for months. It is now unquestionable that these two entities have interests clearly affected by the outcome of this litigation." Defs.' Mem. at 21. Plaintiffs' failure to join Uber and Lyft in this litigation, according to Defendants, requires dismissal of the Amended Complaint. Plaintiffs in turn argue that failure to join individual TNCs or their drivers has no effect on the ability of the existing parties to effectively litigate the action. See Pls.' Opp'n. at 13. Plaintiffs also maintain that "[t]he argument put forth by the Defendant[s] ... that each and every TNC now operating in New York must be joined as a necessary party to the instant action is baseless and impractical." Id. at 15.
1. Standard of Review and Legal Principles
Federal Rule of Civil Procedure 12(b)(7)"authorizes dismissal of a pleading for failure to join a party under Rule 19 [of the Federal Rules of Civil Procedure]." Nw. Consultants, Inc. v. Bloom , No. 10 CV 5087,
When evaluating a motion to dismiss brought under Rule 12(b)(7), the Court must engage in a two-step inquiry under Rule 19. Associated Dry Goods Corp. v. Towers Fin. Corp. ,
Required Party. A person who is subject to service of process and whose joinder will not deprive the court of subject-matter jurisdiction must be joined as a party if: (A) in that person's absence the court cannot accord complete relief among existing parties; or (B) that person claims an interest relating to the subject of the action and is so situated that disposing of the action in the person's absence may: (i) as a practical matter impair or impede the person's ability to protect the interest; or (ii) leave an existing party subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations because of the interest.
FED. R. CIV. P. 19(a)(1). Second, "[i]f a party is necessary, but joinder would divest the court of jurisdiction, the court must consider whether dismissal is warranted under Rule 19(b), that is, whether the suit can proceed 'in equity and good conscience' without the necessary party." Milhelm Attea & Bros. ,
2. Application
As the Second Circuit has emphasized, "[a] party is necessary under Rule 19(a)(1) only if in that party's absence 'complete relief cannot be accorded among those already parties. ' " MasterCard Int'l Inc. v. Visa Int'l Serv. Ass'n, Inc. ,
Nor are TNCs or TNC drivers required parties under Rule 19(a)(1)(B). "The second prong of the Rule 19(a) inquiry turns on whether the non-party's absence will impair or impede its ability to protect its interests." BNP Paribas v. Bank of New York Tr. Co., N.A. , No. 11 CIV. 350,
[it] is not enough under Rule [19(a)(1)(B) ] for a third party to have an interest, even a very strong interest, in the litigation. Nor is it enough for a third party to be adversely affected by the outcome of the litigation. Rather, necessary parties under Rule [19(A)(1)(B) ] are only those partieswhose ability to protect their interests would be impaired because of that party's absence from the litigation.
MacDermid, Inc. ,
Moreover, as the plain language of the provision indicates, to be a "required" party under Rule 19(a)(1)(B), a party must "claim[ ] an interest relating to the subject of the action." FED. R. CIV. P. 19(a)(1)(B) ; see Peregrine Myanmar Ltd. v. Segal ,
For these reasons, the Court concludes that TNCs and individual TNC drivers are not properly considered parties "required to be joined if feasible" in the instant litigation under Rule 19(a)(1). Their absence from the litigation poses no problem of justiciability. Consequently, the Court denies Defendants' motion to dismiss the Amended Complaint pursuant to Rule 12(b)(7).
D. Dismissal Pursuant to Rule 12(b)(6)
The remainder of the arguments put forward by Defendants can be characterized as requests for dismissal of Plaintiff's Amended Complaint under Rule 12(b)(6) for failure to state a claim. Specifically, Defendants contend the following: (1) Plaintiffs' equal protection claim fails as a matter of law; (2) any claim Plaintiff purports to raise under Article IV of the United States Constitution fails as a matter of law; and (3) the Individual Defendants are protected from suit by qualified immunity. The Court will briefly address Defendants' arguments with respect to Article IV and qualified immunity before focusing the balance of its attention on the equal protection argument.
1. Standard of Review
When addressing a motion to dismiss brought pursuant to Rule 12(b)(6), the Court must liberally construe the claims set forth in the complaint, accept all factual allegations in the complaint as true, and draw all reasonable inferences in favor of the plaintiff. See Aegis Ins. Servs., Inc. ,
The Supreme Court clarified the appropriate pleading standard in Ashcroft v. Iqbal ,
2. Article IV of the United States Constitution
Defendants argue that "[i]n amending their Complaint, plaintiffs have added a cause of action based on an alleged violation of the Privileges and Immunities Clause. See Amended Complaint, Second Cause of Action." Defs.' Mem. at 17. They continue, "plaintiffs evidence a fundamental lack of understanding of this cause of action. While styled as a claim based on
While the Court agrees that nothing in the Amended Complaint can support a claim brought under Article IV, the Court does not construe the Amended Complaint to be raising any such claim.
3. Qualified Immunity
Defendants maintain that Governor Cuomo and Commissioner Egan are protected by qualified immunity, and all claims against them require dismissal for that reason. See Defs.' Mem. at 18-20. However, the Court need not engage in the typical qualified immunity analysis since the Court has already determined
4. Equal Protection
The heart of Defendants' motion directly challenges the assertion that Article 44-B violates Plaintiffs' equal protection rights. Defendants argue that Plaintiffs cannot demonstrate the "extremely high degree of similarity" between traditional taxis and TNCs that litigants asserting equal protection claims in the absence of suspect classifications must demonstrate. Defs.' Mem. at 17. According to the Defendants, the "important differences between TNCs and taxicabs justify the use of different regulatory schemes to regulate taxi and TNC services, especially in light of the clear rationality of the statute in addressing State objectives, and Plaintiffs' equal protection claim fails."
a. Legal Principles
The Equal Protection Clause of the Fourteenth Amendment requires the government to treat all similarly situated individuals alike. City of Cleburne v. Cleburne Living Ctr., Inc. ,
At the motion to dismiss stage, a "class-of-one" plaintiff "must plausibly allege that he or she has been intentionally treated differently from others similarly situated and no rational basis exists for that different treatment." Progressive Credit Union ,
Part and parcel of the "high degree of similarity" that a class-of-one plaintiff must plead is the well-established principle of rational basis review of legislative acts that fail to implicate suspect classifications or fundamental constitutional rights. In areas of social and economic policy, "a statutory classification that neither proceeds along suspect lines nor infringes fundamental constitutional rights must be upheld against [an] equal protection challenge if there is any conceivable state of facts that could provide a rational basis for the classification." F.C.C. v. Beach Commc'ns, Inc. ,
b. Application
Since Plaintiffs do not allege that Article 44-B implicates suspect classifications or fundamental constitutional rights, their equal protection claim must proceed as a class-of-one claim. As such, Plaintiffs must be able to allege that they and TNCs are "prima facie identical" in all relevant respects. Neilson ,
Before addressing specific distinctions between taxi operators and TNCs, the Court draws attention to Plaintiffs' central contention, identified in the following propositions: traditional taxis and TNCs are similarly situated because, although methods of requesting their services differ, "[t]he service provided by both TNCs and taxi cab operators is transportation." Pls.' Opp'n. at 25. Similarly, traditional taxis and TNCs "perform the same service of providing consumers with on-demand transportation for a price: a traditional taxi and an App-based taxi both transport passengers from one point to another for a fee." Am. Compl. ¶ 38. As a general matter, the Court agrees with Judge Gorton of the District of Massachusetts, who observed that "it is not self evident that traditional taxicab operators and TNCs are similarly situated in the context of Equal Protection. Plaintiffs' contention that both involve 'driver, vehicle, passenger and payment' and therefore must be treated equally does little to support its assertion that the two are similarly situated."
With respect to specific and material distinctions between traditional taxicab companies and TNCs, Plaintiffs' own filings illustrate several. For example, Plaintiffs' Amended Complaint states that
[t]he for-hire transportation services provided by Plaintiffs are prearranged, and regulated through the dispatching of [ ] vehicles. Riders request transportation services, are quoted a fee, and a vehicle is dispatched to provide them a ride. This is precisely the same manner services are offered by the TNCs, however, one ride is ordered by a voice call on a phone and the other by utilizing the App on the same mobile device or phone. It is posited that this difference is insufficient to permit the TNCs to adhere to different and more lax standards of licensing, maintenance and most importantly, safety regulations.
Am. Compl. ¶ 12. This paragraph alone identifies two fundamental differences between the operation of traditional taxi companies and TNCs: taxis operate "through the dispatching of [ ] vehicles" while TNCs do not, and taxis are "ordered by a voice call on a phone" while TNCs are not. See id. ¶ 10 ("The vast majority of owners in Plaintiff's association operate their business by providing rides to passengers who call them and request transportation services."); see also Affidavit of John Tomitz, attached as Exhibit 4 to Pls.' Opp'n. ("Tomitz Aff.") [DE 46-4] ¶¶ 1, 8 ("I am ... a shareholder in numerous for-hire transportation companies, including the Plaintiff, LINDY'S FLEET SERVICE, INC .... Our passengers call for a ride[,] we provide them with the cost over the phone, and then dispatch a vehicle for their pick-up."); Pls.' Opp'n. at 19 (referencing "company dispatcher"). Compare with
The documents accompanying Plaintiffs' motion papers highlight several other material differences in the way traditional taxi companies and TNCs operate. It is generally understood, and Plaintiffs' filings make clear, that taxis and other non-TNC for-hire vehicles are company owned.
Similarly, at least some taxi companies maintain physical locations at cabstands and public locations for on-the-spot rides. Affiant Charles David states that his company "has a written Lease Agreement with the MTA Long Island Railroad for the exclusive right to park and provide
Perhaps inadvertently, Plaintiffs also underscore at least one significant difference in the way taxis and TNCs charge their customers. As affiant John Tomitz states, Plaintiff and "[t]raditional taxi operator" Lindy's Fleet Service, Inc. "do[es] not 'surge price' or pay for any traffic delays, as TNCs often do." Tomitz Aff. ¶¶ 6, 8.
Having highlighted these distinctions,
The Court does not find that the absence of this distinction negates the several material distinctions the Court has identified.
Plaintiffs' failure to allege an extremely high degree of similarity between traditional taxis and TNCs necessarily precludes them from alleging that there is no rational basis for Article 44-B's treatment of TNCs vis-à-vis traditional taxis. Although the burden is on Plaintiffs to negate every conceivable basis for support of Article 44-B, Progressive Credit Union ,
As the Supreme Court has stated, "[t]he general rule is that legislation is presumed to be valid and will be sustained if the classification drawn by the statute is rationally related to a legitimate state interest. When social or economic legislation is at issue, the Equal Protection Clause allows the [legislature] wide latitude." City of Cleburne,
IV. CONCLUSION
For the foregoing reasons, the Court GRANTS Defendants' motion to dismiss and Plaintiffs' Amended Complaint is DISMISSED in its entirety. The Clerk's Office is directed to close this case.
SO ORDERED .
Notes
The parties have consented to this Court's jurisdiction for all purposes, pursuant to
This case was reassigned to District Judge Joan Azrack following Judge Wexler's death in March 2018.
Defendants state that "[o]n August 8, 2017, Plaintiffs faxed a bare Order to Show Cause to the Office of the New York State Attorney General, purportedly once again seeking injunctive relief, but this time, in the New York State Supreme Court." Defs.' Mem. at 6 n.2. On August 9, 2017, Plaintiffs' request for injunctive relief was denied.
The Court also notes that, with respect to the portion of Defendants' motion seeking dismissal pursuant to Federal Rule of Civil Procedure 12(b)(7), "[i]t is a generally accepted principle that the court is not limited to the pleadings on a Rule 12(b)(7) motion." Am. Ins. Co. v. Kartheiser , No. 17-CV-5545,
Counsel for Defendants' affirmation states that the motion is being made pursuant to "FRCP Rule 12(b)" without identifying any specific subsection(s) of that Rule. See Affirmation of Susan M. Connolly, Esq. ("Connolly Aff.") [DE 48] ¶ 1. Similarly, Defendants' memorandum in support states the "Standard of Review for a 12(b) Motion to Dismiss the Complaint," again without identifying any subsection(s) of Rule 12(b). See Defs.' Mem. at 7.
Although Defendants do not invoke Rule 12(b)(1) with respect to their first argument, "the Supreme Court has, on more than one occasion, described the Eleventh Amendment as a 'jurisdictional bar,' Seminole Tribe v. Florida,
Similarly, Defendants do not invoke Rule 12(b)(1) with respect to their sixth argument. However, it is well settled that standing is a necessary component of the Court's subject matter jurisdiction. See Lujan v. Defs. of Wildlife ,
Although Defendants do not invoke Rule 12(b)(7) with respect to their fifth argument, they aver that Plaintiffs have failed to comply with Federal Rule of Civil Procedure 19. As such, the Court construes this part of their motion as arguing "failure to join a party under Rule 19," pursuant to Rule 12(b)(7). See Fed. R. Civ. P. 12(b)(7).
In Ex parte Young , the Supreme Court addressed the inherent tension between the promise of the Fourteenth Amendment and the Supremacy Clause on one hand, and the principles of sovereign immunity embodied in the Eleventh Amendment on the other. See Perez v. Ledesma,
While a sufficiently close connection between a defendant and enforcement of a government act or policy under Ex parte Young is required, "personal involvement" is not. A defendant's "personal involvement" in an alleged constitutional deprivation is a prerequisite for a damages action under Section 1983. However, district courts in this Circuit have held "that the personal involvement requirement does not apply to bar actions ... pursuant to § 1983 for injunctive relief against a state official." Marinaccio v. Boardman , No. 1:02 CV 00831,
Defendants appear to recognize this factor. See Defs.' Reply at 1 ("It is simply not enough to name State officials and ask that the Court assume that because plaintiffs believe their constitutional rights are being infringed, that the named State officials are responsible.").
The Supreme Court has observed the "well-recognized irony in Ex parte Young; unconstitutional conduct by a state officer may be 'state action' for purposes of the Fourteenth Amendment yet not attributable to the State for purposes of the Eleventh. Nevertheless, the rule of Ex parte Young is one of the cornerstones of the Court's Eleventh Amendment jurisprudence." Fla. Dep't of State v. Treasure Salvors, Inc. ,
The Second Circuit has recognized a limited exception to the general rule that organizations may not bring Section 1983 claims on behalf of their members where the organization alleges a violation of the First Amendment right to freedom of association. See Aguayo v. Richardson,
In Nnebe v. Daus ,
Section 2 of Article IV provides that "[t]he citizens of each state shall be entitled to all privileges and immunities of citizens in the several states." U.S. Const. art. IV, § 2, cl. 1.
Plaintiffs state that a taxi "requires a large capital investment when purchased," Am. Compl. ¶ 41, further highlighting the distinction between company-owned vehicles used exclusively as taxis and driver-owned TNC vehicles.
The Court recognizes that Defendants point to several other purported distinctions. See, e.g. , Defs.' Mem. at 14-15. However, the Court limits its analysis here to only those distinctions having support in the pleadings, documents referenced in the pleadings or incorporated into the pleadings, and documents, filings, and matters of which the Court may take judicial notice.
Although this is a statement of law which the Court need not credit, the Court takes judicial notice of the legal provisions referenced by Plaintiffs in the Amended Complaint.
By prohibiting TNCs from accepting "street hails," see