Court dismisses taxi union challenge of City of Ottawa’s vehicle for hire bylaw

A challenge by a union representing taxi drivers of the City of Ottawa‘s bylaw governing private transportation companies (PTCs), such as Uber, has been largely dismissed by the Superior Court of Justice.

“I conclude the applicants have not proven bad faith on the part of the City in enacting the 2016 [vehicle for hire] bylaw nor have they proven that the bylaw grants a ‘bonus,'” Justice Maria Linhares de Sousa wrote in a decision dated on Tuesday.

The bylaw, which was enacted in 2016, was aimed at regulating PTCs and updating regulations that govern taxis and limousines. The City of Ottawa required the companies to get a business licence.

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According to a memo released on Tuesday by Rick O’Connor, Ottawa’s city clerk and solicitor, Unifor Local 1688 filed a challenge with the Court alleging “city council failed to properly consult with taxi drivers and without regard to the economic impact of the new regime on the established taxi industry.”

O’Connor also said the court challenge alleged the bylaw “constituted illegal ‘bonusing'” and “unlawfully discriminates between taxi drivers and Uber-type drivers with regard to the types of equipment used.”

In the decision, Linhares de Sousa said the City of Ottawa’s decision on the bylaw was “based on [the] perception of what was in the public interest in this very difficult sector given the emerging issues the City was facing in the [vehicle for hire] industry.” She said the bylaw was within the city’s “legislative and regulatory mandate.”

However, the City of Ottawa noted the court quashed two sections of the bylaw requiring taxi plate owners and taxi brokers to indemnify the City in collisions.

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In a press release touting the new regulations in September 2016, the City of Ottawa said any company operating in the city must apply and receive a business licence before operating.

“Licensed PTCs must comply with a number of regulations for public safety and consumer protection regarding transactions with customers, affiliated drivers, and vehicle standards including ensuring that drivers have the required police records checks as well as appropriate insurance, and that vehicles are safe and regularly inspected,” the release said, adding PTCs would have to pay the same broker fees and per-ride fees as taxi companies.

“Each PTC must provide to the City’s chief license inspector information about its drivers and their vehicles in order to ensure compliance with legislated requirements.”

Meanwhile, the Court will hear submissions over who will pay costs associated with the case.