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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