A taxicab owner and operator has filed a class action lawsuit against Uber that seeks more than $400 million in damages and an injunction that would prohibit UberX and UberXL from operating anywhere in the province of Ontario.
The plaintiff, Dominik Konjevic, alleges that UberX and UberXL drivers have repeatedly violated section 39 of the Highway Traffic Act, which states that “no person shall arrange or offer to arrange for a passenger to be picked up in a motor vehicle other than a bus for purposes of being transported for compensation unless the driver of the motor vehicle is licensed, permitted or authorized."
The lawsuit is seeking $400 million in compensation and an additional $10 million in punitive damages.
"The plaintiff alleges that Uber X and Uber XL has created an enormous marketplace for illegal transportation in Toronto," Jay Strosberg of Sutts, Strosberg LLP said in a press release announcing the lawsuit. "The courts have previously ruled that Uber Black, Uber SUV and Uber Taxi services do not contravene any municipal bylaws, however we are alleging that UberX and UberXL do not fall into the same category, and are in fact blatantly in contravention of the Ontario Highway Traffic Act, and detrimental to the ongoing business interests of every taxi and limousine operator in the province."
UberX allows drivers to pick up fares in their own personal vehicles using a mobile app.
In a statement, Uber spokesperson Susie Heath called the lawsuit "protectionist" and said it was "without merit."
"As we saw from a recent court ruling in Ontario, Uber is operating legally and is a business model distinct from traditional taxi services.”
UberX is currently offered in 25 Canadian communities and earlier on Thursday Uber announced it is being expanded to London, Waterloo Region, Hamilton and Guelph.
According to a press release, Konjevic’s lawsuit alleges that Uber “knowingly created and controlled a business enterprise that would harm the business interests of the plaintiff and the class members and that the defendants were unjustly enriched when they collected a portion of the UberX and Uber XL fares.”
The release says the lawsuit is being filed on behalf of “all taxicab owners, taxicab drivers, taxicab brokers, limousine owners, limousine drivers and limousine service companies." licenced in Ontario.
It should be noted, however, that it will ultimately be up to the courts to decide who will be included as a class member in the suit.
One of the city’s largest taxi companies, Co-Op Cabs, has already confirmed to CTV News that they will not be participating in the suit.
Meanwhile, a spokesperson for the Toronto Taxi Alliance issued a statement on Thursday noting that UberX is “causing many professional drivers in Toronto to lose significant portions of their income.”
“We wish Mr. Konjevic and Mr. Strosberg every success in this important legal initiative,” Sam Moini said.
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