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DoorDash Sued NYC 15% Cap on Commissions Now Confidentiality in a Second Case in SDNY

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

SDNY COURTHOUSE, March 8 – 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."

In late December the City moved to dismiss, arguing that the plaintiffs' regulatory takens claim fails and, on December 28, annexing Grubhub's IPO documents, Doordash' prospectus and Uber Eats' Form 10-K. Watch this site.

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

On March 8, 2022, Magistrate Judge Sarah L. Cave held a proceeding in another DoorDash case against NYC. In this case, Judge Cave ordered that a Proposed Confidentiality Stipulation be filed by March 11 and a join letter on discovery disputes by April 22. This case is DoorDash, Inc. v. City of New York, 21-cv-7695 (Torres / Cave)

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