Limousine driver files federal suit in fight over rates
The lawsuit contends that Hillsborough County officials violated the man's rights by punishing him for charging discount rates.
By BILL VARIAN
Published October 1, 2004
TAMPA - A Hillsborough County limousine driver who says he has been punished by government for charging too little has taken his case to federal court.
Daniel Steiner claims in a suit filed Thursday that his constitutional right to make a living without unreasonable government interference has been trampled by the Hillsborough County Public Transportation Commission, which regulates the cars-for-hire business.
Steiner was placed on six-months probation last year after the PTC found him guilty of charging less than the minimum $40-per-trip rate required by its regulations. Agency officials have said the rules are meant to prevent limousine operators from taking business from taxi cabs.
Lawyers for Steiner said the PTC has violated Steiner's 14th Amendment rights to equal protection under the law with an arbitrary rule that favors one business over another.
Steiner is being represented by the California-based Pacific Legal Foundation, a public interest law firm.
"When it comes to competition with taxi cabs, that's what the market is supposed to be about," said Timothy Sandefur, a staff attorney for the Pacific Legal Foundation. "Taxi companies want to keep their income up by making it illegal for you to shop somewhere else."
As a result, the firm contends, its rules are unconstitutionally interfering with Steiner's right to make a living.
Steiner has a niche business. He owns five Lincoln Town Cars he runs under the name DSL Transport Service. In large part, he transports patients to clinics for appointments.
Under PTC rules, he must charge at least $40 an hour, with a minimum charge of $40.
But Steiner contends some of his trips take only 15 minutes. He might charge $15 or $30 for the service, and transport several people at one time, adding up to more than the $40 required.
The PTC says that violates the rules and placed him on six months probation last October. Had he violated the rules while on probation he could have faced a range of penalties, including the loss of a permit to operate his business.
Steiner initially filed suit in state court, but his probation ended before the courts took up the matter so the issue was rendered moot.
Greg Cox, executive director of the PTC, said his board is expected to hold a workshop next week to discuss several changes to agency rules. One is the minimum charge for limousines.
He said he feels somewhat ambivalent about it, but generally thinks is more persuaded that the minimum charge also leads to high minimum standards for service that people expect from limousines. And he said he generally believes that, without some restriction, limousine drivers would eat into the most lucrative parts of the taxi business, threatening their survival.
Taxi companies, for instance, are required to be on call 24 hours and accept all fares, regardless of whether they are profitable. Limousine drivers don't have the same restriction.
"I'm personally indifferent," Cox said. "But I think the logic of having regulation probably slightly outweighs the logic of not having it. I think over time it would cause a degradation of service."
Sandefur, the Pacific Legal Foundation, took exception to Cox's comments. "Of course he's apathetic," he said. "It's not his business that's being shut down."
