A state appeals court ruled Tuesday in favor of the Taxi of Tomorrow.
Judges ruled that the Taxi and Limousine Commission is legally allowed to require all taxi owners to purchase specially designed Nissan minivans.
The four-judge panel said the requirement is appropriate in the interest of creating a modern, standardized taxi fleet for the city.
The decision overturned a lower-court ruling, which said the requirement overstepped the TLC's authority.
The TLC said it is satisfied with the ruling but is prepared for an appeal.
Meanwhile, the Greater New York Taxi Association, which brought the original suit, has not yet commented.