Legal Question in Business Law in California

Is it a case of unfair competition?

There are 17 incorporated cities in San Diego county. MTS regulates taxicab business in all 17 cities. The result of regulation: taxicabs from San Diego city can pick up customers in any of these 17 cities, and they do. But cabs from any other incorporated city don't have the right to make pick up in the city of San Diego.


Asked on 8/23/07, 4:00 am

3 Answers from Attorneys

Larry Rothman Larry Rothman & Associates

Re: Is it a case of unfair competition?

We would have to review the regulations and ordinances. You may have a claim, but first your adminstrative remedies have to be exhausted. Then, a Writ of Mandate can be filed.

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Answered on 8/24/07, 9:10 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Is it a case of unfair competition?

I would say it's not unfair competition in the legal sense as meant in Business & Professions Code sections 17000 or 17200 and following sections, because it is legally sanctioned by the rules and regulations of the regulatory body with powers in that area.

Howver, this is not to say that it's fair or right, or that there is no remedy. The decisions and rules of regulatory bodies are subject to challenge by various legal processes.

Generally, attacks on governmental and quasi-governmental bodies, agencies, etc. come under the heading of administrative law, and it's usually necessary to use up all your so-called administrative remedies before taking the agency to court.

That means studying the MTS's setup, authority, policies, practices and procedures. You may have to initiate a rule-making proceeding, or follow their rules to appeal a prior rule-making. Agencies like MTS are supposed to make rules like these after a public hearing and taking evidence from all sides and on all points of view.

If this fails, and you have no further remedies against the agency (MTS), then perhaps you can take the agency to court via a suit for what is called administrative mandamus, where you seek a court order telling the agency to correct an error it made, such as failure to consider the evidence or violation of a law. In general, however, courts give agencies broad discretion to make rules and don't disturb them unless there has been lack of due process or clear violation of a law by the agency.

In this case, I'd guess the rule is based on a policy of minimizing empty miles overall. If there is a sound reason for the rule, and it was adopted after hearing and considering evidence, a court would probably let it stand even if it seems unfair to some operators.

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Answered on 8/23/07, 12:24 pm
Terry A. Nelson Nelson & Lawless

Re: Is it a case of unfair competition?

There was a similar post a while back. The answer is the same: it doesn't matter what opinion you get. If you want it to change, then get the cabbies together and file suit. Complaining about it is just wasting time and breath. Contact me if you get serious and willing to do something about it.

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Answered on 8/23/07, 3:01 pm


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