Saturday, November 27, 2021

DoorDash and Uber Eats Sued NYC 15% Cap on Commissions But Discovery Stayed in SDNY

 

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Nov 22 – DoorDash, GrubHub, Seamless, Postmates and Uber Eats have sued New York City, saying that the now permanent commission cap at 15% is unconstitutional.        

       On November 22, U.S. District Court for the Southern District of New York Judge Gregory H. Woods held a proceeding. Inner City Press covered it.  

 The City's lawyers argue that the contracts allegedly impaired were and are "at will," and the SEC filings show that the plaintiffs knew that they were in an evolving and increasingly regulated industry.

The City says it is capping fees in order to keep neighborhood restaurants vibrant.

 Judge Woods has stayed discovery, nothing that "the resolution of Defendant's motion [to dismiss] will inform the scope of future discovery."

The case is DoorDash, Inc. et al v. City Of New York, 21-cv-7564 (Woods)  

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