Jan 23, 2008 — The V.I. Taxicab Association has filed suit against the V.I. Port Authority and a number of hotels as well as the V.I. Hotel and Tourism Association, alleging racketeering, collusion and fraud, among other things.
The suit alleges that the Port Authority is allowing transportation businesses, other than those that are part of the franchise with the Taxi Association, to collect passengers at the airport.
"It's a complex case," said Terri Griffiths, lead counsel for the Taxi Association.
According to the suit, V.I. law provides that only members of the V.I. Taxi Association or their drivers have the right to provide ground transportation to the arriving passengers from the Cyril E. King Airport, St. Thomas, U.S. Virgin Islands, subject to some exceptions including one for tour operators.
In addition, the Port Authority issues a contract for the taxi concession at the airport.
According to the suit, the contract requires at least 40 taxis to be available at the airport, but there were times that taxis waited all day without a fare while operators outside the franchise picked up passengers.
Griffiths said that most major airports have taxi franchises and that without the order they impose there would be "chaos and a circus."
The taxi case centers on hotels that issue vouchers at the airport for transportation to their properties by vendors who are not part of the taxi franchise at the airport.
"The Port Authority employs a franchise monitor, whose responsibility is to immediately address any disputes that might occur regarding ground transportation services at the airport," said Monifa Marrero, VIPA public information officer.
The suit alleges that the hotels, "with VIPA’s full knowledge, covertly and overtly, in collusion, knowingly arranged and provided airport ground transportation of persons with VITA’s and plaintiffs’ unlawful competitors."
"We are reviewing the complaint and have referred it through the proper channels and will address it in a timely manner," said Tom Bolt, general counsel for the Hotel and Tourism Association.
Other defendants in the suit declined comment.
Griffiths pointed out that all V.I. ports (both air and marine) have a franchise or concession for taxis, but King airport is the one where there is a problem.
"I don't know of any other taxi association or business who are complaining that their business is being diverted in violation of their franchise," Griffiths said.
Griffiths pointed out that a number of the hotels are receiving significant tax breaks in the Virgin Islands.
"These hotels are EDC companies that over the course of their contract with the government are granted in excess of $100 million dollars in tax exemptions," Griffiths said in a statement. "That is $100 million less in the U.S.V.I. Treasury."
In return, the hotels promise that they will stimulate and encourage local businesses and abide by all laws, federal and local. They are precluded from unlawfully competing with local business, the statement continued.
"The V.I. Taxi Association and the airport drivers want what any another other party to a contract wants — the benefit of their bargain," Griffiths wrote. "They want restitution, to be made whole."
The suit is asking the court for punitive damages, disgorgement (the forced giving up of profits obtained by illegal or unethical acts) of all profits derived from intentional and fraudulent conduct and giving up of EDC tax exemptions, as well as attorneys' fees.
Back Talk
Share your reaction to this news with other Source readers. Please include headline, your name and city and state/country or island where you reside.
