Monday, October 7, 2024
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Metro Taxi class action item to Finance Committee October 1

“Damages remain outstanding”

The Metro Taxi vs City of Ottawa class action court case appeared on the agenda of Ottawa’s Finance and Corporate Services Committee October 1st.

The report by Interim City Solicitor Stuart Huxley provides the Committee with a summary of the May 16th decision by Justice Marc Smith, in which he found Ottawa was negligent in its enforcement duties when Uber arrived in 2014, and also that Uber was “a bandit taxi company.”

“The City was successful in defending against two of three issues, however the Court ruled against the City on the enforcement question, finding the City negligent in its enforcement of the then 2012 Taxi By-law as against Uber during the period September 1, 2014, to September 30, 2016,” reads Huxley’s report, which scheduled to go to Ottawa Council on October 16th.

“A remaining issue remains before the Court on the question whether damages in the aggregate is an appropriate remedy. It is anticipated that this issue will be litigated in early 2025 before the trial Court. Following the Court’s decision, parties will then have an opportunity to appeal any or all of the trial items to the Court of Appeal. The question of damages remains outstanding.”

Tom Conway, the litigator whose team won the Ottawa judgement wrote the City on May 28th, proposing a per-trip fee to compensate Taxi drivers who were plaintiffs in the suit.

Tom Conway, founding partner of Conway Litigation. Image: Conway

“We wish to renew the idea that a potential settlement could involve a funding mechanism of a nominal fee charged per ride for all private transportation companies, including Uber and taxis,” Conway wrote Ottawa’s legal counsel.

“This idea was raised several times pre-trial, including at the pre-trial conference. 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,” Conway suggested.

Ottawa has not responded to this letter.

On May 13, Ontario Superior Court judge Marc Smith ruled that the City of Ottawa 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.

Justice Smith did not make a decision on damages owed to plaintiffs but instead directed the parties to speak to each other and attempt to come to an agreement.