Greater N.Y. Taxi Ass'n v.

• Decision Date: 10 June 2014
• Citation: 2014 N.Y. Slip Op. 04156,121 A.D.3d 21,988 N.Y.S.2d 5
• Parties: GREATER NEW YORK TAXI ASSOCIATION, et al., Petitioners–Respondents, v. The NEW YORK CITY TAXI AND LIMOUSINE COMMISSION, etc., et al., Respondents–Appellants, Nissan Taxi Marketing, N.A., LLC, et al., Respondents–In–Intervention–Appellants. Design Trust for Public Space; Bryant Park Corporation and 34th Street Partnership; Global Gateway Alliance; Paul Herzan; Sarah Holloway; Lily Auchincloss Foundation, Inc.; Manhattan Chamber of Commerce; Eric Rothman; Elliot “Lee” Sander; John E. Sherman, M.D.; Smart Design; and Transportation Alternatives, in Support of Respondents–Appellants, Amici Curiae.
• Court: New York Supreme Court — Appellate Division

121 A.D.3d 21

988 N.Y.S.2d 5

2014 N.Y. Slip Op. 04156

GREATER NEW YORK TAXI ASSOCIATION, et al., Petitioners–Respondents,

v. The NEW YORK CITY TAXI AND LIMOUSINE COMMISSION, etc., et al., Respondents–Appellants,Nissan Taxi Marketing, N.A., LLC, et al., Respondents–In–Intervention–Appellants.Design Trust for Public Space; Bryant Park Corporation and 34th Street Partnership; Global Gateway Alliance; Paul Herzan; Sarah Holloway; Lily Auchincloss Foundation, Inc.; Manhattan Chamber of Commerce; Eric Rothman; Elliot “Lee” Sander; John E. Sherman, M.D.; Smart Design; and Transportation Alternatives, in Support of Respondents–Appellants, Amici Curiae.

Supreme Court, Appellate Division, First Department, New York.

June 10, 2014.

Jeffrey D. Friedlander, Acting Corporation Counsel, New York (Elizabeth I. Freedman, Leonard Koerner and Nicholas R. Ciappetta of counsel), for The New York City Taxi and Limousine Commission and David Yassky, appellants.

Jenner & Block LLP, New York (Peter J. Brennan and Harold M. Greenberg of counsel), for Nissan Taxi Marketing, N.A., LLC and Nissan North America, Inc., appellants.

Mintz & Gold LLP, New York (Steven G. Mints, Lisabeth Harrison and Richard H. Topaz of counsel), for respondents.

Kostelanetz & Fink, LLP, New York (Claude M. Millman and Caroline Rule of counsel), for amici curiae.

ANGELA M. MAZZARELLI, J.P., ROLANDO T. ACOSTA, DAVID B. SAXE, KARLA MOSKOWITZ, JJ.

SAXE, J.

We hold that the iconic “Taxi of Tomorrow”—the Nissan NV200—developed and implemented by New York City's Taxi and Limousine Commission (TLC) after years of public vetting, is a legally appropriate response to the agency's statutory obligation to produce a twenty-first century taxicab consistent with the broad interests and perspectives that the agency is charged with protecting. Accordingly, we reverse Supreme Court's grant of the petition brought by certain taxi fleet owners challenging the TLC's designation of an “Official Taxicab Vehicle,” based on its finding that the agency exceeded its grant of authority under the New York City Charter and violated the separation of powers doctrine.

Background

The TLC was created in 1971 to license and regulate vehicles for hire in New York City, including yellow taxis, livery cabs, limousines, paratransit vehicles and commuter vans. The first sentence of the New York City Charter provision creating the TLC states that the TLC's overall purpose is “the continuance, further development and improvement of taxi and limousine service in the City of New York” (New York City Charter § 2300). More importantly, the same provision states that “the further purpose of the commission, consonant with the promotion and protection of the public comfort and convenience[, is] to adopt and establish an overall public transportation policy governing taxi, coach, limousine, wheelchair accessible van services and commuter van services” ( id.). This language could hardly be stronger or more expansive; the TLC's assigned mission is to establish public transportation policy

to develop and improve New York City taxi service.

One element of that broad mission is contained in the Charter's directive that the TLC establish rates and standards for service, insurance, minimum coverage, driver safety, equipment safety and design, noise and air pollution control, and for the licensing of vehicles, drivers, owners and operators engaged in such services ( see New York City Charter § 2303). Notably, the provisions directing the setting of standards and specifications are merely a part of the overall directives of the Charter. The Charter specifies a limit to the TLC's authority in only one respect: “Additional taxicab licenses may be issued from time to time only upon the enactment of a local law providing therefor” ( see New York City Charter § 2303[b][4] ).

Since its inception, the TLC has performed its prescribed duties without further legislative direction, with one exception. In 2005, based on findings that the TLC's specifications for taxicabs had “prevented many promising alternative fuel vehicles ... from being used as taxicabs” merely because they failed to meet TLC specifications “by minimal amounts,” the New York City Council enacted a law requiring the TLC to “approve one or more hybrid electric vehicle models for use as a taxicab within ninety days after the enactment of this law” ( see Administrative Code of City of N.Y. § 19–533). The TLC abided by this direction, and the fleet of New York City taxicabs now includes thousands of hybrid vehicles, with eight different models currently in use.

With the exception of the 2005 legislative direction, however, the TLC has exercised its expansive authority unchallenged. Indeed, at the beginning of the last decade, following a collaboration with Ford, the TLC set its taxicab vehicle specifications to match the stretch version of the Ford Crown Victoria. Consequently, the Ford Stretch Crown Victoria became the dominant vehicle in the taxi fleet for a time. The TLC did, however, also allow medallion owners to alter other vehicle models to meet the specifications it set; such alteration was termed “hacking up” the vehicle.

The “Taxi of Tomorrow” Program

By 2007, the Ford Stretch Crown Victoria was still the dominant car in the New York City taxi fleet, followed by the Ford Escape SUV hybrid. However, production of both of those models was about to be discontinued, which would create substantial uncertainty among medallion and vehicle owners about new vehicles that would meet, or could be modified to meet, TLC specifications. The TLC convened an advisory committee in August 2007 to solicit input from the various stakeholders, including owners, drivers and riders, as well as disability advocates and environmental advocates. Based upon that input, the TLC determined that instead of simply setting standards and specifications for New York City medallion taxicabs, thereby leaving each owner responsible for purchasing a vehicle and having it “hacked up” to meet the agency's specifications, it would best meet the needs of all taxi industry stakeholders and the public if the City entered into an arrangement with a single automobile manufacturer that could design a vehicle that would meet all the TLC's specifications without any need for modification.

The TLC did not do this alone or in a vacuum. It acted in conjunction with other elements of City government, in a very public, and widely publicized, process that took years, and involved obtaining substantial input from the public as well as from groups representing all interested parties.

To begin the process, on February 20, 2008, the TLC issued a Request for Information, which introduced the “Taxi of Tomorrow” concept. Following the compilation of the information received, on December 17, 2009, New York City's Department of Citywide Administrative Services issued a Request for Proposals (RFP), stating that the TLC was seeking a highly qualified “Original Equipment Manufacturer” to develop a vehicle with high safety standards, superior passenger experience, superior driver comfort and amenities, appropriate purchase price and maintenance and repair costs, minimal environmental impact during the life of the vehicle, minimal physical footprint with more useable interior space, accessibility for disabled users, and an iconic design. In response to the RFP, the City received seven proposals, which were reviewed by an evaluation committee. Three finalists were selected: the Nissan NV200, the Ford Transit Connect, and the Karsan USA V1. The three finalists were announced on November 15, 2010 on the TLC's website and in the media; the Mayor's Office issued a press release, and photographs were made available on the City's website. Members of the public could provide feedback and vote on their desired taxi design features.

A thorough review of the three finalists' proposals was conducted, including several rounds of interviews. The Nissan model received the highest rating and had the lowest ownership cost.

Following the lengthy and comprehensive evaluation process, on May 3, 2011, Mayor Bloomberg announced the selection of the Nissan NV200 as the Taxi of Tomorrow. The TLC and Nissan executed a Letter of Intent with respect to a contractual agreement regarding the use of the Nissan NV200 vehicles as New York City taxicabs.

After months of negotiations, the City and Nissan agreed on a 10–year manufacture and supply contract, titled “Vehicle Supply Agreement,” which granted Nissan the exclusive right to manufacture and supply the “Official Taxicab Vehicle” and replacement parts to holders of unrestricted New York City medallions. The agreement requires, among other things, that the vehicles be tested in accordance with federal safety standards and meet detailed specifications. The agreed-on model was to have enhanced driver and passenger comfort features, including ample legroom, dual manual sliding doors, rear passenger entry steps, passenger reading lights, adjustable driver and passenger seats, built-in GPS navigation system, rear passenger HVAC controls, USB charge ports, transparent roof panel, and floor lighting. The agreement also requires Nissan to modify the Taxi of Tomorrow upon request, to make it fully wheelchair accessible; the vehicle has other features designed to aid passengers with disabilities, including grab handles and deployable side steps.

After a hearing, the TLC amended the rules codified in RCNY Title 35, Chapter 67, entitled “Rules for Taxicab Hack-up and Maintenance.” The new rules, entitled the “Original Taxi of Tomorrow Rules,” required that after October 31, 2013, holders of unrestricted medallions issued prior to January 2, 2012, who were scheduled to replace their taxi vehicles due to age or condition, purchase the Nissan NV200.

The Previous Action

However, those rules were vacated by Supreme Court, New York County, for failure to allow for the purchase and use of hybrids for...