United Cab sues City of New Orleans over fines in excess of $300K they claim will bankrupt company

NEW ORLEANS – A local cab company is suing the city of New Orleans over fines they claim are excessive and would bankrupt their company.

United Cabs Inc. filed suit against the City of New Orleans, through the Department of Safety and Permits in the Orleans Parish Civil District Court on Dec. 4, 2013.

United Cab claims that the Department of Safety and Permits (DSP) erred in its determination of a fine and that the fine imposed is excessive, outlandish and capricious. United alleges the DSP abused its discretion in its determination and in levying a fine that exceeds the maximum fine of $100 per violation.

On Dec. 4, 2013 United alleges they were sent a letter from DSP sustaining the alleged violation and imposing a fine of $331,250. Additionally, United claims DSP violated due process by creating a conflict of interest whereby DSP was receiving legal advice on the law and the proper procedure on handling administrative hearings regarding driver’s permit denials, suspensions and revocations from the same city attorney prosecuting said matters.

United claims the fine would bankrupt the company, rendering it unable to service the thousands of people who depend on United Cabs as a daily means of transportation. United is seeking a review of the fine.

United is represented by attorney Ike Spears of New Orleans-based Spears & Spears.

The case has been assigned to Division F Judge Christopher J. Bruno.

Case no. 2013-11369.