Article content continued

“The goal is to keep supply and demand (of licences) in balance so that drivers can afford to stay in business,” Way wrote.

In a press release sent Friday afternoon, Ottawa city clerk and solicitor Rick O’Connor said the lawsuit would be “vigorously defended.” He also said no other public comments would be made as the matter is now before the courts.

The statement of claim, which has not been tested in court, says the city owed a duty of care to the taxi industry, which required the city to take “reasonable steps” to maintain the integrity of the regulatory scheme.

It claims the city created a scheme for taxi services that, in order to function effectively, required investment from plate holders.

The scheme created and maintained the market value of the plates and, the statement of claim says, the city “actively and deliberately encouraged the growth in the market value” by permitting the sale of plates and capping the number issued.

The city directly benefitted from the market value of the plates, including through fees levied on the transfer of plates, the lawsuit says.

Yet when Uber came to town, “the City breached its standard of care by taking no steps to enforce the regulatory scheme against Uber and taking vastly inadequate steps to enforce the regulatory scheme against Uber’s drivers,” the statement of claim says.

It goes on to state that the failure of the city to enforce its own rules was an operational decision not based on economic, social or political factors, and did not result from a policy decision of the City made “in good faith.”