Sutts, Strosberg LLP

July 23, 2015 11:43 ET

CDN$400M Class Action Commenced Against Uber X and Uber XL on Behalf of all Taxicab and Limousine Drivers, Owners and Brokers Licensed in Ontario

TORONTO, ONTARIO--(Marketwired - July 23, 2015) - A Class Action has been filed with the Ontario Superior Court of Justice, by Sutts, Strosberg LLP on behalf of all taxicab owners, taxicab drivers, taxicab brokers, limousine owners, limousine drivers and limousine service companies licensed, permitted or authorized to operate in The Province of Ontario ("Class Members").

The Plaintiff, Dominik Konjevic, a taxicab owner and operator, alleges that Uber Technologies, Inc., Uber Canada Inc., Uber B.V. and Rasier Operations B.V. ("the defendants") and UberX Drivers conspired, agreed or arranged among themselves to arrange, or offer to arrange, for a passenger to be picked up by the UberX Drivers in a motor vehicle for transportation for compensation when they knew UberX Drivers were not licensed under s. 39.1(1)(a), (b), (c) or (d) of the Highway Traffic Act causing the Plaintiff and the Class Members to suffer damages.

The lawsuit seeks CDN$400M in compensatory damages, $10M in punitive damages and an injunction prohibiting UberX from continuing to operate in the Province of Ontario.

Under s. 39.1(3) of the Highway Traffic Act, "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 under s. 39.1(1)(a), (b), (c) or (d). The Plaintiff alleges that the defendants conspired to arrange or offered to arrange for these passengers to be picked up by the UberX Drivers thereby diverting millions of dollars of revenue away from licensed taxicab, limousine owners and drivers in Ontario and injuring their ongoing legitimate business interests.

"The Plaintiff alleges that Uber X and Uber XL has created an enormous marketplace for illegal transportation in Toronto," said Jay Strosberg, Sutts, Strosberg LLP. "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."

Many of the Uber Black, Uber SUV and Uber Taxi drivers are properly licensed drivers who operate in accordance with the Highway Traffic Act governing the taxicab and limousine businesses in Ontario.

However, the UberX and Uber XL Drivers, who are registered to use the UberX and UberXL services, do not conform with s. 39.1(1) of the Highway Traffic Act.

The suit alleges that Uber and its UberX and Uber XL platforms knowingly created and control 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 which were in contravention of s.39.1(1) of the Highway Traffic Act.

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