Cabbies propose Ottawa charge 'nominal fee' on Uber, taxi rides to cover potential lawsuit settlement
Taxi drivers are proposing a "nominal fee" on Uber and taxi rides in the City of Ottawa to cover the cost of a potential settlement in the class-action lawsuit over the city's handling of Uber's arrival 10 years ago.
The lawyers representing Ottawa's cab drivers and companies say the proposal would "avoid burdening" taxpayers with a potential multi-million-dollar cost to the city's budget.
In May, an Ontario Superior Court judge ruled the city was negligent in its enforcement of the Taxi Bylaw when Uber began operating in Ottawa in 2014. Metro Taxi Ltd., Coventry Connections president and CEO Marc Andre Way and taxi plate holder Iskhak Mail filed a class action lawsuit against the city in 2016, seeking $215 million.
The damages will be decided at a later date, with the judge recommending the two sides consider the judgment before determining the next course of action.
- Sign up now for daily CTV News Ottawa newsletters
- The information you need to know, sent directly to you: Download the CTV News App
In a letter to the city's lawyers, obtained by CTV News Ottawa, lawyer Thomas Conway says the taxi drivers "wish to explore" whether the parties could avoid further litigation through a renewed effort to settle, including appointing a mediator to facilitate the discussions.
"With a new City Council and a shift in public opinion, there may be a window of opportunity for the City and the plaintiff class to put this litigation behind them and to renew the cooperative and productive relationship between the parties," Conway writes.
In the letter, dated May 28, Conway proposes to "renew the idea" that a potential settlement could include a "funding mechanism of a nominal fee charged per ride" on all private transportation companies, including taxis, Uber and Lyft rides.
"This approach would enable the City to recover the settlement amount through these fees from those who use private transportation and taxi services and would avoid burdening the City’s ratepayers with the cost of funding payment of a substantial award," the letter states.
"This appears to us to be a principled option worthy of further discussion and consideration. In our view, this approach should be revisited now that the Court has determined the City’s liability to the plaintiff class."
Lawyers representing the taxi companies and drivers initially raised the idea of a fee on private transportation rides during a pre-trial conference.
A lawyer representing the taxi drivers and companies tells CTV News Ottawa the idea of a fee to compensate taxi perform holders isn't new, pointing to Quebec. In Quebec, a 90-cents per-ride fee was added to taxi and Uber-like services to boost compensation for taxi permit holders under a deal with the provincial government.
Lawyers for the taxi drivers are hoping to schedule a trial management conference in June to discuss a timeline for the continuation of the trial.
The city has not responded to the letter proposing a mediator to facilitate discussions on a settlement and the idea of a surcharge on taxi and Uber rides.
Superior Court Justice Marc Smith ruled the city acted negligently in its enforcement of the Taxi Bylaw when Uber arrived. Taxi drivers and companies argued the arrival of the company disrupted business and harmed their ability to make a living.
"The city's response to Uber's arrival was negligent, causing harm to the taxi industry," Smith wrote. "The city capitulated to Uber's bully tactics when it entered the Ottawa market."
Smith said the city adopted a "defeatist and acceptance approach" to Uber's arrival.
"Uber was permitted to defy the law openly for two years without suffering any consequences whatsoever. On the other hand, because of Uber's blatant disregard of the law, the Plaintiffs suffered," Smith wrote in the judgment.
"The evidence establishes that the City knew that its failure to properly enforce the 2012 Bylaw would likely cause harm to the taxi industry. A multinational giant was invading Ottawa, and because of the City's unpreparedness and its lack of efforts to develop a plan to enforce the 2012 Bylaw, the City's enforcement efforts against Uber drivers were ineffective."
The City of Ottawa declined to comment on the fee proposal or the state of the lawsuit.
"The 30-day appeal period starts once the trial court addresses whether aggregate damages are appropriate. The date for this is yet to be set," City Solicitor Stuart Huxley told CTV News Ottawa.
"Keeping with its standard practice, the City does not comment on matters before the courts.”
With files from CTV News Ottawa's Ted Raymond
Must Watch
Top Videos
CTVNews.ca Top Stories
Driver who entered Canada 'without stopping' at B.C. border crossing arrested: police
A man who illegally blew through the Canada-U.S. border crossing in Surrey, B.C., Sunday morning has been arrested, according to authorities.
1 hour ago
Man responsible for New Year's truck attack previously visited New Orleans, Ontario, Egypt: FBI
The man responsible for the truck attack in New Orleans on New Year's Day that killed 14 people visited the city twice before and recorded video of the French Quarter with hands-free glasses, an FBI official said Sunday.
3 hours ago
Thousands are without power due to winter storm hitting Newfoundland and Labrador
Massive waves slammed Newfoundland and Labrador's coastline on Sunday, as a powerful winter storm left thousands without power.
1 hour ago
Pamela Anderson, Ryan Reynolds among Canadians vying for Golden Globes tonight
Tonight’s Golden Globes will feature a strong Canadian presence, with British Columbia actors Pamela Anderson and Gabriel LaBelle among the first-time nominees.
2 hours ago
'It was just devastating': Southern Manitoba golf course clubhouse burns for second time in 4 years
A golf course clubhouse in Morden, Man. went up in flames Sunday for the second time in less than four years, and mere days after its reopening from the previous fire was celebrated.
1 hour ago
WATCH Woman critically injured in explosive Ottawa crash caught on camera
Dashcam footage sent to CTV News shows a vehicle travelling at a high rate of speed in the wrong direction before striking and damaging a hydro pole.
5 hours ago
Maserati driver critically injures one, seriously injures another in Surrey hit-and-run: police
The driver of a Maserati fled the scene of a high-speed crash in Surrey that sent two people to hospital, one in critical condition on Saturday night, according to authorities.
Motocross rider injured after executing jump during North American International Motorcycle Supershow
Christian Martinez, a motocross rider participating in the North American International Motorcycle Supershow in Mississauga, was rushed to the hospital after executing a big jump during the show, a source tells CP24.
2 hours ago
Here’s why you should monitor your blood pressure, keep it in check
An Ottawa pharmacist says blood pressure is a good indicator of overall health, noting the importance of keeping it at healthy rates.