Singh v. City Of New York

189 A.D.3d 1697 (2020)

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Nature of the Case

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Facts

Ps allege that prior to holding three taxi cab medallion auctions in late 2013 and early 2014, the TLC 'intentionally overstated the value of taxi medallions and concealed the fact that the value of those medallions had already begun to decline due to factors known to the TLC but not disclosed to Ps,' and that after the auctions, the TLC 'through its actions and inaction, significantly undermined the value of the medallions it had just sold to Ps.' The TLC's alleged wrongful action and inaction after the auctions included permitting affiliates of Uber Technologies, Inc. to acquire licenses to operate black car services despite the affiliates' failure to satisfy the black car licensing requirements, and permitting affiliates of Uber to 'accept street hails in direct and illegal competition with medallion taxis.' D moved to dismiss the complaint. The Supreme Court granted the motion to dismiss the first cause of action, which sought to recover damages for violations of General Business Law § 349. Ps appeal from this portion of the order. The court denied those branches of D's motion which were to dismiss the third cause of action, which sought to recover damages for breach of the implied covenant of good faith and fair dealing, and so much of the fifth cause of action as sought rescission of the contracts based upon breach of the implied covenant of good faith and fair dealing, on the ground that Ps failed to state a cause of action. Ds appealed from these portions of the order.