Toronto council could lose Uber lawsuit, city lawyer warns

The city's top lawyer is warning Toronto council it could lose a lawsuit brought by rideshare giant Uber — if it doesn't change the limits of its latest license.

A confidential briefing note written by a city lawyer and obtained by CTV News states: “Without action by the Council, Uber could find that the Council's decision does not meet the legal test applied by courts in previous cases. therefore, the court annuls the law.”

The development is a blow to Mayor Olivia Chow's plan to freeze the number of ridesharing licenses until at least the end of next year.

In a surprise vote in October, the council voted 16-7 in favor of the move as it debated moving the industry to zero-emission vehicles by 2030. Proponents, including Chow, argued that limiting the number of licenses would reduce pollution and congestion. — but Uber Canada sued.

The ridesharing company claims the cap was made in bad faith and without notice, in violation of the city's own procedural rules.

In a confidential report to the council, the lawyer writes that there are “legal issues” with how the freeze was enacted. Removing the cap, he advises, “would make Uber's appeal moot”; delaying it allows consultation with the industry.

“Any cap implemented after receiving input from city staff and comments from interested parties would be protected,” the report said.

Chow, asked Tuesday morning if he would withdraw after filing a lawsuit, replied: “No. I can't comment on the lawsuit. It's before the court.” Chow, however, met with a lawyer on Tuesday evening to discuss the case.

The city attorney noted in the briefing that there is no need to change the council's previous decision, in which case it will send legal staff to defend the lawsuit.

The report pegs the city's potential legal costs of responding to the lawsuit at up to $40,000. If the city loses, the attorney noted, it could pay Uber's legal costs, which could exceed $150,000.

In addition, the RideFair Toronto group named in the petition is applying for intervenor status in the lawsuit.

“You know, it's limited to about 54,000 drivers,” group spokesman Torben Widitz told CTV News Toronto.

“But if people leave, new people can come in. So, you know, it's a rolling break. And we believe that Uber is fully capable of doing good business in the city of Toronto with these number of licenses.”

Uber requested an expedited court date and will address the case at a Dec. 19 hearing. The City Council will meet Wednesday and discuss the matter mostly in camera.

“We'll have a chance to sort out the information and, you know, decide what to do,” Kuhn said. Michael Thompson said Tuesday.

“In my view, (a) threat of legal action on a policy decision or any decision should not address the question of whether or not to back down.”