The appellants, who own taxicab licences in Toronto, sought to certify a class proceeding against the City of Toronto for economic losses allegedly caused by the City's failure to enforce its by-laws against Uber and other private transportation companies.
The motion judge dismissed the certification motion, finding it plain and obvious that the City did not owe the appellants a private law duty of care.
The Divisional Court dismissed the appeal, agreeing that the City's regulatory role and its interactions with the appellants did not create a relationship of proximity, and that policy reasons regarding indeterminate liability negated any prima facie duty of care.