Law Office of
Richard L. Downey
Super Lawyers
The top Attorneys in Virginia and
the Washington, D.C. metropolitan
area, only 5% of the attorneys
in the state are named in SuperLawyers
ATA NBTA | The National Board of Trial Advocacy Association of Trial Lawyers of America Virginia Trial Lawyers Association

Startup taxi services sued by competitors

Seven taxi companies filed a lawsuit in Fairfax Circuit Court in Virginia on July 18 claiming that startup companies Uber and Lyft were operating without proper permits. The two companies allow people to download an app and then use that app to request a ride from anyone nearby offering their services through the companies. The majority of the plaintiffs are operated by Stafford Limousine, Inc., which is based in Richmond and operates in the central and northern parts of the state.

A representative from Uber says that the company cannot comment on active litigation, but the company will defend its customers and the rights of its drivers to build their own business. Lyft said that the case was without merit and that it looks forward to resolving it quickly. Both companies say that they are working with state officials to create a regulatory framework that ensures that customers are getting rides from safe and reliable drivers.

Both companies were ordered to cease operations on June 6 after negotiations between the companies and the state broke down. However, both sides have since returned to the negotiating table in hopes of reaching a deal. In recent weeks, both Uber and Lyft have filed paperwork that would allow them operating authority on a temporary basis. They have also filed for brokers' licenses to provide for-hire transportation within the state of Virginia.

Companies that do business in the state of Virginia are required to have the proper authority to do so. This means being properly licensed and filling out any and all necessary applications. If a business is operating illegally, the owners or affiliates of the company could be penalized. Any business that is being accused of not complying with the law may wish to hire a business litigation attorney for assistance.

Source: Richmond Times-Dispatch, "Virginia taxi companies sue Uber, Lyft", Jacob Geiger and Carol Hazard, July 18, 2014

No Comments

Leave a comment
Comment Information

DISCLAIMER: This website is designed to provide only general information; nothing contained herein constitutes legal advice nor is it an offer of legal representation. Use of this website is not intended in any way to create or convey the impression that such use of the website by any person, organization, or entity of any nature and/or kind constitutes any attorney-client relationship whatsoever and any information provided in this website shall not constitute legal advice. The use of any electronic communication available through this website with the Law Office of Richard L. Downey or any person associated with this website shall not constitute attorney-client relationship nor will any communication received by the Law Office of Richard L. Downey constitute an attorney-client communication. The Law Office of Richard L. Downey cannot make any guarantees as to the accuracy or currency of any information contained in or created in this website or the use of any link to another website contained in this website. The information that you obtain at this website is not, nor is it intended to be legal advice. You should consult a lawyer for individual advice concerning your own particular situation.

*The National Board of Trial Advocacy is accredited by the American Bar Association. Currently there is no procedure in the Commonwealth of Virginia for approving certifying organizations.