The battle between taxi drivers and UberX has escalated with the launch of a $400 million class-action lawsuit.

The lawsuit, filed on behalf of Ontario taxi and limo drivers, brokers and owners, specifically targets the Uber services which involve drivers using an app to pick up passengers in their personal cars.

The statement of claim alleges that UberX and UberXL violate section 39.1 of the province’s Highway Traffic Act by having unlicensed drivers picking up passengers and transporting them for compensation. This has diverted “millions of dollars of revenue away from properly licenced taxicab, limousine owners and drivers in Ontario,” according to the statement of claim.

The lawsuit, which comes as the controversial UberX expands across Ontario, also seeks an injunction to prohibit UberX from continuing to operate in the province of Ontario, according to the statement of claim.

The lawsuit has not been certified and the allegations have not been proven in court.

“This protectionist suit is without merit,” said Uber Canada spokesperson Susie Heath in an email. “As we saw from a recent court ruling in Ontario, Uber is operating legally and is a business model distinct from traditional taxi services.”

Earlier this month, a Toronto judge denied a city-requested ban on Uber operating in the city, finding that the company was not operating a taxi or limousine service and was therefore not breaking any city bylaws.

“That is irrelevant for the purposes of our lawsuit,” says Jay Strosberg of Sutts, Strosberg, the law firm behind the class-action lawsuit. “Our lawsuit is based on a provision of the Highway Traffic Act that explicitly says that you cannot arrange transportation unless you are licenced.”

The civil action could have a direct impact on UberX drivers, who the lawsuit alleges are in a “conspiracy” with Uber to offer the service, Strosberg said.

“Our theory is that (UberX drivers) are part of the conspiracy. That means technically…if the court says Uber has to pay money one day, then Uber could go and collect some of the money back from the drivers,” says Strosberg. “They should be on notice.”

The lead plaintiff in the case is Dominik Konjevic, veteran taxi driver and member of the iTaxiworkers union.

In an interview with the Star, he lamented both the financial impact of UberX, which can offer cheap fares while taxi drivers like himself have to spend money on licencing, commercial insurance and regular inspections, and potential safety risks to passengers.

“I hope, if we have enough money, that we can go through the world if we have to, to get rid of these people because there has to be some fairness in this business,” Konjevic, 72, said. “My bills are bigger than the money that I’m making.”

The city is working on changing the municipal bylaws after Mayor John Tory (open John Tory's policard)called for a single set of rules that would apply to both taxis and services such as Uber.

The mayor’s office declined to comment on the class-action lawsuit.

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Meanwhile, UberX drivers continue to face potential charges under Toronto municipal bylaws and the Highway Traffic Act.

With files from Jennifer Pagliaro

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