DoorDash
Sued NYC 15% Cap on Commissions Now
Estimates 1 Week for Jury Trial in SDNY
By Matthew
Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY COURTHOUSE,
Sept 23 – 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.
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 joint letter on
discovery disputes by April 22.
On April 26
Judge Cave held another proceeding, and
Inner City Press again covered it. Judge
Cave granted an extension of fact discovery
to September 23.
In September,
Judge Cave held another conference, and
Inner City Press yet again covered it. The
parties estimate a jury trial of one week.
The next case management conference is set
for November 3 at 10 am.
This case is
DoorDash, Inc. v. City of New York,
21-cv-7695 (Torres / Cave)
***
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