Desoto Cab Co. v. Picker
Citation | 228 F.Supp.3d 950 |
Decision Date | 12 January 2017 |
Docket Number | Case No. 15–cv–04375–EMC |
Parties | DESOTO CAB COMPANY, INC., Plaintiff, v. Michael PICKER, et al., Defendants. |
Court | U.S. District Court — Northern District of California |
Shannon Michele Seibert, Joseph Isaac Bautista, Seibert & Bautista, San Francisco, CA, for Plaintiff.
Arocles Aguilar, Jonathan Creekmore Koltz, Pouneh Ghaffarian, Mitchell Alan Shapson, California Public Utilities Commission, San Francisco, CA, for Defendants.
ORDER GRANTING DEFENDANTS' MOTION FOR JUDGMENT ON THE PLEADINGS
Plaintiff Desoto Cab Company, Inc., d/b/a Flywheel Taxi ("Flywheel"), has filed a suit for declaratory and injunctive relief against the Commissioners of the California Public Utilities Commission ("CPUC"), in their official capacities only.1 Flywheel, a "traditional" taxi company, asserts a § 1983 equal protection claim against the CPUC based on the agency's assertion of jurisdiction over new transportation carriers such as Uber, Lyft, and Sidecar. Flywheel contends that these so-called transportation network carriers ("TNCs") are de facto taxi companies and therefore should be subject to the same rules and regulations as traditional taxi companies, which are regulated not by the CPUC but rather by local municipalities. The gist of Flywheel's complaint is that the CPUC's rules and regulations governing TNCs are less strict than the rules and regulations of the local municipalities governing traditional taxis so that, in the final analysis, the TNCs are more favorably treated. According to Flywheel, TNCs are de facto taxi companies much like traditional taxi companies, and thus all should be regulated by local municipalities or all should be regulated by the CPUC, rather than subjected to a disparate bifurcated regime. Failure to do so, according to Flywheel, violates the Equal Protection Clause of the Fourteenth Amendment.
Currently pending before the Court is the CPUC's motion for judgment on the pleadings, or in the alternative, for summary judgment.
As an initial matter, the Court takes judicial notice of the following:
Accordingly, under the state statutory framework, taxicab companies, unlike charter-party carriers of passengers, are specifically excluded from the CPUC's jurisdiction; they are regulated by cities and counties, not by the CPUC.
Against this backdrop, Flywheel alleges as follows in its first amended complaint ("FAC").
Flywheel is "a taxi company that operates on-demand transportation services in the City and County of San Francisco." FAC ¶ 13. As a traditional taxi company, Flywheel is regulated by the San Francisco Municipal Transportation Agency ("SFMTA") and not the CPUC. See FAC ¶¶ 11–12. FAC ¶ 3.
"In October 2012, the SFMTA exercised jurisdiction over UberX, Lyft and Sidecar and began to regulate them as taxi companies." FAC ¶ 20. However, some two months later (i.e. , in December 2012), the CPUC instituted a rulemaking process to assess how companies such as UberX, Lyft, and Sidecar should be regulated. See FAC ¶ 21.
In September 2013, the CPUC issued a decision in which it adopted rules and regulations that govern TNCs (i.e. , the Phase I Decision), thus, implicitly asserting jurisdiction over TNCs. This created a scheme where TNCs are regulated by the CPUC whereas traditional taxi companies are regulated by local municipalities.
With respect to the issue of the CPUC's jurisdiction over TNCs, the CPUC noted as follows in its Phase I Decision:
California law currently recognizes and regulates three modes of passenger transportation for compensation: taxi services, regulated by cities and/or counties; and charter-party carrier services, and passenger-stage companies, regulated by the Commission. In recent years, the communications revolution in wireless service, smartphones, and on-line apps has further facilitated the development and adoption of passenger transportation for compensation to a point where passengers seeking rides can be readily connected with drivers willing to provide rides in private vehicles. This development in passenger transportation for compensation, referred to in this proceeding as TNCs and associated with companies including UberX, Lyft, and Sidecar, does not fit neatly into the conventional understandings of either taxis or limousines, but that does not mean that this Commission's responsibility to public safety in the transportation industry should be ignored and/or left for individual companies or the market place to control.
Docket No. 22 (RJN, Ex. N) (Phase I Decision at 11–12).
The CPUC continued:
Docket No. 22 (Ex. N) (Phase I Decision at 20–21).3
In 2014, the California Legislature amended the California Public Utilities Code to include provisions on TNCs. See Cal. Pub. Util. Code § 5430 et seq.
According to Flywheel, TNCs and traditional taxi companies "are identical in all relevant respects." FAC ¶ 26. For example, both "offer and arrange transportation services using smart phone applications." FAC ¶ 28. Both also provide services "with rides summoned through street or smart-phone hails." FAC ¶ 27. Both "use a metering system based on distance and time traveled to determine the fare." FAC ¶ 30. Both use a credit card payment system. See FAC ¶ 31.
Because, in Flywheel's view, there are no material differences between a traditional taxi company and a TNC, the same rules and regulations should apply to both; yet the CPUC's rules and regulations which apply to TNCs (or lack...
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