In the latest move in the saga of the City of Madison vs. Uber, lawyers have protested Uber’s request to take the city’s complaints to federal court.
After the city brought forward $42,000 in fines against the ride-sharing company for violating city ordinances, Uber moved the case from municipal court to federal court, citing concerns about fair treatment.
The city alleges that Uber has violated city ordinances and has been illegally providing paid rides to customers. But Uber argues that the case is between citizens of different states and federal courts are for “those who might otherwise suffer from local prejudice against out-of-state parties.”
Now the city has responded that it does not believe the case qualifies to go to federal court and should be kept at the municipal level, Michael May, the city attorney, said.
Courts have ruled that violations of municipal ordinances should not be moved to federal court, May said. Furthermore, the federal court requires that $75,000 be at stake in order to bring up a municipal case, while Uber’s falls far short of that at $42,000, he said. However, Uber is claiming that they would lose more than $75,000 if it loses the case, due to loss of revenue caused by the ban on ride-sharing services.
May said he expects Uber will continue to advocate for the case to be heard in federal court.
“I expect them to fully litigate this case,” he said.
Moving forward, May said it will be up to the courts to decide whether the federal or municipal branch should hear the case. If the case goes to municipal court, Uber will likely file more papers, and further legal arguments will ensue, he said. From there, the case will go to trial.
Even if Uber pays the $42,000 in forfeitures, it would not solve this complaint, May said. Uber would still need to register with the city under the ordinance.
Some of the biggest problems the city has with Uber are its lack of insurance, 24-hour coverage, handicap accessibility and practice of surge pricing.
May said he expects the case will ultimately be resolved.
“Either we’ll get some ordinance changes and they’ll operate within them or we won’t,” he said. “And they’ll be subject to additional complaints or they’ll leave town.”
Resnick challenges mayor on Lyft/Uber ride-sharing regulation
However, Uber has no plans to leave town, Uber spokesperson Lauren Altmin said in an email to The Badger Herald.
More than 2,600 Madisonians have signed a petition voicing their support for Uber, Altmin said. Uber will continue to operate in Madison, she said.
“Since our launch in Madison we have seen an incredible response from riders demanding additional transportation options and drivers seeking a flexible economic opportunity,” Altmin said.
The city’s Transit and Parking Commission is currently reviewing ride-share ordinances as it seeks to regulate the way companies like Uber and Lyft operate in the city.
Uber’s proposal is now pending in City Council, May said.
