Justia New York Court of Appeals Opinion Summaries

Articles Posted in Transportation Law
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The Court of Appeals held that warrantless inspections authorized by New York regulations adopting a rule promulgated by the Federal Motor Carrier Safety Administration (FMCSA) requiring the installation of electronic logging devices (ELD) in commercial motor vehicles fell within the administrative search exception to the warrant requirement.The FMCSA promgulated the rules at issue in 2015, and the rules were permanently incorporated into New York law in 2019. Petitioner commenced this combined N.Y. C.P.L.R. 78 proceeding and declaratory judgment action challenging New York's adoption of the rule. Supreme Court granted Respondents' motion to dismiss, concluding that the searches authorized by the rule were valid under the exception to the warrant requirement for administrative searches. The appellate division affirmed. The Court of Appeals affirmed as modified, holding (1) the lower courts properly determined that the ELD rule is constitutional; but (2) Supreme Court should have declared the rights of the parties rather than dismissing the complaint. View "Owner Operator Independent Drivers Ass'n v. N.Y. State Dep't of Transportation" on Justia Law

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The Court of Appeals affirmed the judgment of the Appellate Division dismissing Plaintiffs' claims that Taxi and Limousine Commission and New York City breached the implied covenant of good faith and fair dealing and engaged in deceptive business practices under N.Y. Gen. Bus. Law 349, holding that Plaintiffs failed to state a claim.Plaintiffs, entities that purchased government licenses to operate taxis at an auction, brought this action alleging that Defendants (1) breached the implied covenant of good faith and fair dealing by failing to enforce certain licensing requirements against smartphone applicate-based competitors such as Uber Technologies, Inc. and Lyft, Inc.; and (2) engaged in deceptive business practices in their promotion of the auction. Supreme Court granted in part Defendants' motion to dismiss. The Appellate Division reversed in part and concluded that both claims should be dismissed. The Court of Appeals affirmed, holding (1) Plaintiffs did not adequately plead a claim for breach of the implied covenant of good faith and fair dealing; and (2) Plaintiffs failed to plead the type of conduct covered by N.Y. Gen. Bus. Law 349. View "Singh v. City of New York" on Justia Law

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Plaintiff filed an action alleging that Defendants committed fraud and negligence when performing and evaluating a random drug test that Plaintiff was required to take as an airline pilot. The United States Court of Appeals for the Second Circuit certified two questions of New York law to the New York Court of Appeals. The Court accepted the questions and answered (1) drug testing regulations and guidelines promulgated by the Federal Aviation administration and the Department of Transportation do not create a duty of care for drug testing laboratories and program administrators under New York negligence law; and (2) a plaintiff may not establish the reliance element of a fraud claim under New York law by showing that a third party relied on a defendant’s false statements resulting in injury to the plaintiff. View "Pasternack v. Lab. Corp. of Am. Holdings" on Justia Law

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The New York City Taxi and Limousine Commission (TLC), which regulates taxis and other cars for hire in New York City, engaged in a lengthy process to create the “Taxi of Tomorrow.” The process culminated in rules that established a particular make and model of vehicle as the City’s official taxicab. Petitioners sought to invalidate the rules and obtain a related declaration, arguing that the TLC lacked authority to enact the rules and violated the separation of powers doctrine in doing so. Supreme Court concluded that the rules were invalid because the TLC exceeded its authority under the City Charter and violated the separation of powers by intruding in the City Council’s domain. The Appellate Division reversed and declared that the rules were valid. The Court of Appeals affirmed, holding that the TLC did not exceed its authority or violate the separation of powers doctrine by enacting the rules. View "Greater N.Y. Taxi Ass’n v. N.Y. City Taxi & Limousine Comm’n" on Justia Law

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Plaintiffs in these cases were judgment debtors whose bank accounts were frozen by judgment creditors in anticipation of enforcement of a money judgment pursuant to N.Y. C.P.L.R. 52. Plaintiffs brought putative class actions in federal court seeking injunctive relief and money damages against their banks on the grounds that their bank accounts were restrained in violation of the Exempt Income Protection Act (EIPA), which requires banks, when served with restraining notices by judgment creditors, to forward certain notices and forms to judgment debtors. In these cases, the banks allegedly failed to send the required forms. The district courts granted the banks' motions to dismiss, concluding that the EIPA does not imply a private right of action. The Second Circuit Court of Appeals certified questions of law to the New York Court of Appeals, which answered by holding (1) a private right to bring a plenary action for injunctive relief and money damages cannot be implied from the EIPA; but (2) a judgment debtor can secure relief from a bank arising from a violation of the EIPA in an Article 52 special proceeding. View "Cruz v. TD Bank, N.A." on Justia Law

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This case involved the regulations of the New York City Taxi & Limousine Commission, limiting rates that could be charged by owners of taxicabs who leased those cabs to drivers. Owners challenged a Commission regulation that prohibited owners from collecting sales tax in addition to the maximum permitted lease rates. The court held that the regulation must be annulled because the Commission had not shown any rational basis for it. View "Metropolitan Taxicab Bd. of Trade v NYC Taxi & Limousine Commn." on Justia Law

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Petitioners, 23 transportation vendors, commenced a CPLR article 78 proceeding to prevent the Department of Education ("DOE") from implementing allegedly illegal bid solicitations related to a school transportation contract. At issue was whether certain specifications in the bid solicitations of the DOE comported with the public bidding laws. The court held that the "Employee Protection Provisions" ("EPPs") contained in the solicitation were subject to heightened scrutiny and held that the DOE had not proven that the EPPs were designed to save the public money, encourage robust competition, or prevent favoritism. The court, however, applied the rational basis review to the remaining disputed bid specifications and held that the DOE's actions regarding pricing of school transportation and discounted payment arrangements were rational business judgments that lie within the DOE's discretion. View "In the Matter of L&M Bus Corp. " on Justia Law