Judge dismisses federal lawsuit challenging Uber deal

A federal judge has dismissed a lawsuit accusing Palm Beach County of providing an unfair competitive advantage to the ride-hailing service Uber.

Several taxi and limo companies sued the county in federal court in May 2015.

The companies alleged the county’s temporary operating agreement signed with Uber put them at a competitive disadvantage by waiving certain regulations, such as requiring drivers to undergo county background checks.

The businesses wanted to be reimbursed for revenue that was lost as a result of the agreement.

Judge Robin Rosenberg wrote that the county had a “rational basis” for entering into the temporary agreement and dismissed the suit. County Attorney Denise Nieman said the ruling shows the county was on sound legal ground when it crafted temporary rules to govern an emerging new technology.

In April, Palm Beach County adopted permanent rules, allowing both taxis and ride-hailing services to conduct their own background checks in lieu of undergoing a more rigorous county background check.

The lawsuit was filed by North County Transportation, Apollo Transportation Services, A1A Airport and Limousine Services, Metro Premier Car Service, and Prestige Limousines.

Doug Eaton, an attorney who represented the firms, said his clients are disappointed they won’t be able to recover damages, but they are pleased that the county’s permanent rules provided a level playing field.

“Our clients would like to think that this case influenced that outcome,” he said.

A similar case is still pending in federal court. Nieman said she thinks this week’s ruling will bolster the county’s position in that matter.