Uber faces off with Nevada taxi industry in court
November 24, 2014 - 6:17 pm
CARSON CITY — A divided panel of the Nevada Supreme Court said Monday that a legal battle between ride-sharing company Uber and the state’s taxi industry should be heard in Washoe County District Court.
In a 2-1 ruling, the high court said the Nevada Transportation Authority filed its case in Washoe on Oct. 27, one day before filing in Clark County District Court on Oct. 28.
The ruling went against Uber, which wanted the dispute heard in Clark County. The case is set to move forward in Reno at 10 a.m. today.
Uber also argued in its petition that the Transportation Authority was engaged in forum shopping, or seeking a favorable court to hear the case.
“Although NTA’s failure to follow the relevant procedural rules demonstrates an inept effort to commence its case, petitioners’ contention that NTA is engaging in such behavior impunes the neutrality of the three District Court judges involved in the dispute between the parties, and nothing in the record supports that contention,” Justices James Hardesty and Michael Douglas said in denying Uber’s petition.
Justice Michael Cherry dissented, arguing the entire Supreme Court should have considered the petition.
Cherry also said he would grant Uber’s petition.
“Notably, nothing in the majority’s order prevents the judge in the Eighth Judicial District Court from continuing to litigate this matter,” he said.
The Eighth Judicial District comprises Clark County.
Cherry said there is the appearance of improper forum shopping by the NTA.
“By denying this petition, the majority may very well encourage such behavior in future matters in our district courts, which I cannot condone,” he said.
At a Nov. 17 hearing in Clark County, District Judge Douglas Herndon contended that his case was filed first.
Records show that the Transportation Authority filed an application for a temporary restraining order against Uber in Clark County District Court on Oct. 24, but it did not file its complaint there until Oct. 28.
The agency also filed an application for a restraining order in Carson City on Oct. 24, 17 minutes after filing the application in Clark County.
At the November hearing, Herdon said the various judges do not care who hears the case, but judges have an obligation to hear all matters that come before them.
“Only one of these cases should be proceeding,” Herndon said.
Contact Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801.