Lawsuit Alleges City Made Secret Deal for Outer Borough Taxis: Report

A group of taxi medallion owners are charging that the city made a secret deal with cabdrivers in order to gain their support for the former outer borough street-hail plan, says the New York Post.

The Post's report says the medallion owners accused the mayor’s office and the Taxi and Limousine Commission of conspiring with the Taxi Workers Alliance to get the union to back the plan that would have allowed 18,000 livery drivers to pick up street hails in the outer boroughs and upper Manhattan.

According to the paper, in return, the yellow-cab drivers would get the 17 percent fare hike they’d been seeking – with 100 percent of the profits – as well as a promise from the city to “eliminate or decrease the percentage fee for credit-card charges, and set up a health and disability fund for the drivers,” the suit says.

The plan to sell medallions to outer borough livery drivers for the ability to pick up street hails, was struck down in June by a judge who found it unconstitutional, though the 17 percent fare increase still went into effect last month.

According to the Post, the processing of credit card costs is now up to the medallion owners choosing, while six cents from every ride is now being set aside for a drivers health insurance fund.