UPDATE: After Brief Denial, STITA Cab Wins Stay Against Port Of Seattle

In a fast-paced legal tennis match, after briefly having its restraining order denied, a State Court of Appeals Commissioner issued a stay late Monday in STITA Cab’s lawsuit against the Port of Seattle.

This means that, pending any other legal maneuvering, the Port will not be able to sign a contract with Yellow Cab.

Earlier Monday, King County Superior Court Judge Steven Gonzalez denied a restraining order filed by STITA to block the Port from signing the contract with Yellow Cab.

The contract for on-demand taxi service at Sea-Tac airport won’t be awarded until the court determines if the Port acted illegally. Judge Gonzalez heard STITA’s case Feb. 4th, and issued his decision Monday afternoon.

After Gonzalez’ initial ruling, STITA immediately took the case to the State Court of Appeals, which agreed to issue a stay – meaning the Port cannot sign with Yellow Cab until the legal issues are resolved.

The commissioner is expected to consider the merits of the case this week.

“We’re thrilled with this late-breaking win,” said Jesse Buttar, STITA cab owner. “We know we have a case. We just want a fair shot at the airport contract.”

On Jan. 29, STITA filed a complaint asking the court to halt the Port from signing a contract that violates state law. STITA seeks a fair and legal proposal process in which all bidders can compete on a level playing field.

In its lawsuit, STITA contends the Port’s bidding process violated the state Airports Act because the Port discontinued its prior practice of charging fees to taxicabs based on the airport’s actual cost of services provided to the cabbies. Instead, it required bidders to commit to pay an unfair concession fee of at least 10 percent of their airport-based revenues. This violates the Airports Act, which says airport concession fees must be based upon the Airport’s actual cost of operations and be reasonable and uniform.

STITA contends the Port’s bidding process caused a predatory bidding war among taxi companies which not only was illegal but will be financially devastating to the King County taxi industry.

STITA’s lawsuit also contends that the Port’s new concession fee violates the King County Code, which requires the King County Council to set the taxi meter rate at a level that is “just and reasonable.” The Port’s new concession fee cuts directly into the county’s taxi meter rate and prevents cab operators from receiving the gross receipts that they legally are entitled to receive.

The exclusive taxicab contract was held by STITA for 20 years in a no-bid deal.  After a harsh rebuke from the State Auditor over its contracting processes, the Port of Seattle issued a “Request for Proposal,” or RFP, for the first time last fall.

Yellow Cab won the award with a bid of $18.3 million, which is $8 million greater than the bid STITA submitted. Yellow Cab was named a defendant in the lawsuit, along with the Port of Seattle and other taxi associations.

In issuing his denial, Judge Gonzales noted that the RFP allowed for prospective bidders to file complaints, or injunctions, to any portion of the RFP document; Gonzales said, “The Plaintiff had the opportunity to file a complaint during the process, and they did not. They only complained when they did not win the bid.”

Stay tuned folks, because this legal match is far from over.