NEW ORLEANS, Louisiana – Uber Technologies, the ride-hail giant that arrived in New Orleans a decade ago, found a loyal defender in the city’s long-time law firm, Sher Garner. Facing potential fines of up to $35 million for numerous code violations, Uber turned to the law firm for help. The violations included failures to comply with local regulations for driver background checks and vehicle inspections, as reported by the Department of Safety and Permits.
In 2018, lawyers representing Uber and its subsidiary, Rasier LLC, engaged in settlement talks with top officials in Mayor LaToya Cantrell’s administration. Although a settlement was proposed, the case never progressed beyond these initial discussions. This led taxi operators, who have been struggling against Uber’s aggressive tactics to gain market advantage, to sue Uber, claiming a conflict of interest on the part of Sher Garner in representing both the city and the ride-hail giant.
At a recent hearing, Jim Garner, the principal of Sher Garner, dismissed claims of a conflict and pointed to waivers from the Cantrell administration that the firm sought to keep confidential. The lawsuit, which exposes Uber’s alleged manipulation of local regulations, has shed light on the close relationship between top executives at Uber and former Mayor Mitch Landrieu’s administration. The result of their collaboration was a set of less-stringent municipal regulations for Uber compared to traditional taxicabs.
The impact on the taxi industry was significant. Demand for taxis plummeted, and the value of New Orleans taxicab permits, known as Certificates of Public Necessity, sharply declined. To counter these challenges, taxi operators have accused Uber of running a scheme to undermine their business through regulatory violations. Uber has faced legal battles and financial settlements in other locations, but few cases like this one in New Orleans have gained traction.
Uber successfully lobbied for statewide legislation in 2019 that superseded local laws, effectively ending most of the legal violations and potential fines against the company. However, taxi operators argue that these violations and fines have yet to be collected by the city. The lawsuit against Uber seeks to hold the company accountable for its aggressive tactics.
Sher Garner, the law firm that has been serving as outside legal counsel for the city for years, has represented New Orleans in various legal matters, ranging from firefighters’ pensions to bogus traffic tickets. City Councilman Joe Giarrusso has expressed interest in discussing the Uber violations and the city’s ability to recover fines.
As the lawsuit continues, both Uber and the taxi operators anxiously await the judge’s ruling regarding Sher Garner’s involvement in the case. Regardless of the outcome, this legal battle highlights the ongoing struggle between Uber and the traditional taxi industry in New Orleans, as well as the scrutiny faced by companies like Uber for their disruptive practices.