Justice Michael Stallman
Petitioners moved for “incidental damages” in this Article 78 action remanded from the Court of Appeals, in which cab owners challenged a New York City Taxi & Limousine Commission regulation barring them from collecting sales tax, in addition to maximum allowed lease rates. The Court of Appeals annulled the regulation as the TLC failed to show a rational basis for it. Petitioners now sought to recover money they could not have previously collected from their lessees while the regulation was in force, arguing they were entitled to these incidental damages as the regulation was now annulled. The TLC argued petitioners abandoned their incidental damages claim on appeal, but the court noted that had the Court of Appeals determined petitioners abandoned their claim it would not have remitted the matter for further proceedings to supreme court. It also noted the damages petitioners sought to recover were not funds New York City collected or withheld from petitioners that could be refunded. Hence, the court ruled the monetary relief petitioners sought was not recoverable as incidental damages under CPLR §7806, denying their motion.
