City Solicitor warns Toronto council could lose Uber lawsuit, offers option to back down
CTV
The City's top lawyer is warning Toronto council that it could lose a lawsuit launched by rideshare giant Uber — if it doesn't change course on its recent licence cap.
The City's top lawyer is warning Toronto council that it could lose a lawsuit launched by rideshare giant Uber — if it doesn't change course on its recent licence cap.
A confidential briefing note written by the City Solicitor and obtained by CTV News reads, "without action by Council, Uber is likely to succeed in establishing that Council's decision does not satisfy the legal test that has been applied by the courts in prior cases. If so, the court will quash the bylaw."
The development is a blow to Mayor Olivia Chow's plan to freeze the number of ridesharing licences until at least the end of next year.
In a surprise vote in October council voted 16-7 in favour of the move amid a discussion about transitioning the industry to zero-emission vehicles by 2030. Proponents, including Chow, argued limiting the number of licences would reduce pollution and congestion in the core — but Uber Canada responded with a lawsuit.
The ridesharing company alleges that the cap was enacted in bad faith and without notice, violating the city's own procedural bylaws.
In the confidential report to council, the Solicitor writes that there are "legal issues" with how the freeze was enacted. Rescinding the cap, she advises, would "render Uber's application moot;" pausing it would allow for consultation with the industry.
"Any cap implemented after receiving information from City staff and comments from stakeholders would be more defensible," the report reads.
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