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New York Legal

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A yellow taxi cab REUTERS Lucas Jackson

Challenge to Bloomberg taxi plan to go before NY Court of Appeals

12/27/2012 COMMENTS (0)

By Daniel Wiessner

ALBANY, N.Y., Dec 27 (Reuters) - The New York Court of Appeals has agreed to review a decision that blocked Mayor Michael Bloomberg's plan to raise $1.4 billion for New York City by selling 2,000 new taxi medallions.

In a rare move, the state's top court will hear the appeal directly, which means it will bypass the mid-level Appellate Division.

Three taxi groups in May sued to overturn the plan, saying it would destroy the livelihoods of thousands of taxi drivers.

In August, Acting Justice Arthur Engoron found that the Bloomberg administration violated the state constitution's "home rule" provisions by asking state lawmakers, instead of the city council, to pass the taxi plan.

On Thursday, the Court of Appeals released a letter dated Dec. 14 in which Deputy Clerk Richard Reed said the court would hear the matters in late April or early May.

Bloomberg, a political independent, is relying on the sale of the new medallions to raise $635 million in 2013, his last year in office, and more than $800 million in 2014 and 2015.

The attorneys involved were not immediately available for comment. A Bloomberg spokesman did not immediately respond to a request for comment.

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