Uber Canada hit with $400 million lawsuit for creating an “enormous marketplace for illegal transportation”

Sutts, Strosberg LLP have filed a class action lawsuit against Uber and Uber Canada.

The law firm is representing Ontario-based licensed taxicab owners, taxicab drivers, taxicab brokers, limousine owners, limousine drivers and limousine service companies that are targeting Uber in a class-action lawsuit for creating an “enormous marketplace for illegal transportation in Toronto.”

The plaintiffs are seeking $400 million (CAD) in compensatory damages, $10M in punitive damages and an injunction prohibiting UberX from continuing to operate in Ontario.

The lawsuit says that UberX drivers are in violation of section 39.1 of the Highway Traffic Act and are not licenced to accept compensation for driving passengers to a specific destination. That section of The Highway Traffic Act says “no person shall arrange or offer to arrange for a passenger to be picked up in a motor vehicle other than a bus for purposes of being transported for compensation.”

Jay Strosberg, Sutts, Strosberg LLP go on to say, “The Plaintiff alleges that Uber X and Uber XL has created an enormous marketplace for illegal transportation in Toronto. The courts have previously ruled that Uber Black, Uber SUV and Uber Taxi services do not contravene any municipal bylaws, however, we are alleging that UberX and UberXL do not fall into the same category, and are in fact, blatantly in contravention of the Ontario Highway Traffic Act, and detrimental to the ongoing business interests of every taxi and limousine operator in the province.”

Uber is currently operating in Toronto, Ottawa, London, Waterloo Region, Hamilton, and Guelph.

Uber declined to comment on the case.

[source] Uber Class Action [/source]