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Updated 10/02/2012 02:24 PM

Taxi Suit Claims Fare Hike Slammed Door On Owners

By: NY1 News

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A group of taxi medallion owners is suing the city over the recent taxi fare hike.

Cabbies recently started collecting 17 percent more on rides, and they are keeping all the money because the charge to lease a taxi from the garage remains the same.

Now the Greater New York Taxi Association says the city's decision to structure the hike to benefit drivers was made in retaliation against owners for challenging Mayor Michael Bloomberg's Five Borough Taxi Plan.

That plan would have allowed livery cabs to pick up street hails in upper Manhattan and the other boroughs, but a judge put it on hold in June.

The association tells NY1 the suit also claims the city worked out a closed-door deal with the Taxi Workers Alliance to get the group to change its position on the five-borough plan.

The Taxi and Limousine Commission calls the association's claims ridiculous.