Court rules city negligent in how it enforced taxi bylaws when Uber arrived

Ontario Superior Court Justice Marc Smith made the ruling in the class action lawsuit launched by lead plantiffs Metro Taxi Ltd.

The City of Ottawa was negligent in enforcing its own taxi bylaws from 2014 until changes were made in 2016 to account for the growing presence of ride-hailing companies like Uber, a judge has ruled.

Ontario Superior Court Justice Marc Smith made the ruling in the class action lawsuit launched by lead plantiffs Metro Taxi Ltd. and plate owners Marc André Way and Iskhak Mail against the City of Ottawa on behalf of taxi plate holders across the city.

The plaintiffs accused the city of negligence for allowing Uber to operate illegally in Ottawa for two years. It also alleged that the city infringed on the Charter rights of plate holders, and that the city's taxi bylaw amounted to an unlawful tax.

Smith found the city did act negligently in its enforcement of taxi bylaws, but did not find it had breached Charter rights or enacted an unlawful tax in reference to taxi fees.

"Uber was permitted to defy the law openly for two years without suffering any consequences whatsoever," Smith said in a ruling issued on May 13. "On the other hand, because of Uber's blatant disregard of the law, the plaintiffs suffered."

The taxi drivers claimed $215 million in damages in their original statement, but Smith has deferred a decision on the penalty to a later date.