Future of lawsuit over ride-hailing legislation unclear after cab companies ask for adjournment

The future of a lawsuit against the Manitoba government launched by the owners of two Winnipeg cab companies is in doubt after a judge granted a request from a lawyer for the companies asking for an indefinite adjournment.

The owners of the Unicity and Duffy's taxi companies want the court to suspend legislation that opened the door to ride-hailing services like Uber and Lyft in Manitoba.

Lawyers for the province and the companies had planned to begin arguing the case Wednesday morning, but Marty Minuk, who represents the companies, told Justice Gerald Chartier that his clients had instructed him the previous day to ask for an adjournment sine die, meaning without setting a future date.

This isn't a restaurant where you can cancel a table because a party just calls and … cancels a reservation.- Justice Gerald Chartier

"I returned yesterday, and expected to be here today and to return tomorrow back to vacation, for the sole purpose of being here," Minuk said.

When Minuk returned to the city late in the afternoon on Tuesday, he said he received instructions from his clients to adjourn.

Chartier expressed confusion and surprise at the motion, pointing out that the adjournment without a future date set could mean one of two things: either the companies plan to abandon their efforts to seek an injunction suspending the province's Local Vehicles for Hire Act, or they planned to resume the proceedings at some future date.

"This isn't a restaurant where you can cancel a table because a party just calls and just cancels a reservation," Chartier said.

Reason for adjournment unclear

Lawyers for the province initially opposed the motion to adjourn, demanding to know more about the reasons, and arguing they should be compensated for the costs of preparing for the hearing.

"When we were in court last, it was the plaintiffs who were pushing for an urgent hearing, and they sought the earliest possible date," said Michael Connor.

"The defendants accommodated that, and here we are today. And you are seeking an adjournment without any explanation being offered."

Chartier briefly adjourned the hearing so Minuk could speak to his clients and get more information.

When court resumed, Minuk said he had spoken with his clients and gotten more information about why they were seeking to pause the proceedings, but he said those reasons fell under attorney-client privilege and would not elaborate on the record in court.

Lawyers for the province said they had spoken to Minuk during the break and agreed to consent to the adjournment, on the condition that the companies inform them whether they plan to proceed with the injunction no later than April 3.

Chartier granted the adjournment after the province's lawyers consented.

Act discriminatory, companies say

The Local Vehicles for Hire Act, which passed in November and came into effect March 1, dissolved the Manitoba Taxicab Board, placing responsibility for regulation with local municipalities.

In a statement of claim filed with the Court of Queen's Bench, the owners of Duffy's Taxi and Unicity Taxi allege the law discriminates against them, citing the Canadian Charter of Rights and Freedoms.

"As a result of the particular market conditions and nature of the taxi industry in the City of Winnipeg, the current holders of Taxi Business Licences are overwhelmingly male, immigrants to Canada, and of South Asian ethnicity and national origin," reads the statement of claim.

"The purpose of the [The Local Vehicles for Hire Act] is to radically alter the existing taxicab industry in the City of Winnipeg and allow for companies operating through Ride Sharing Arrangements to compete with existing taxicab operators."

The Manitoba Taxicab Board's licences were cancelled when the legislation came into effect, but the City of Winnipeg continues to recognize them.