Facts

Plaintiff Bay Area Motivate, LLC, a wholly owned indirect subsidiary of Lyft, Inc., filed suit against Defendants the City and County of San Francisco and the San Francisco Municipal Transportation Agency for breach of contract based on Defendants' alleged failure to comply with Plaintiff Bay Area Motivate, LLC's contractual exclusivity to operate a bike share program in San Francisco.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that bike share agreements entered into between Plaintiff and Defendants in 2015 gave Plaintiff the exclusive right to operate a bike share program in the public rights-of-way in San Francisco. Plaintiff contended Defendants breached those agreements when the City opened a public permit application process and advised Plaintiff that other bike share operators would be considered for permits. Plaintiff brought suit to prohibit Defendants from issuing bike share permits, entering into contracts or agreements, or taking any other measures that would disregard, dilute or otherwise prejudice Plaintiff's exclusive rights.

DEFENDANTS' CONTENTIONS: Defendants denied Plaintiff's contentions and any other alleged wrongdoing.

Result

The court issued a preliminary injunction enjoining Defendants from soliciting others (including by issuing permits) to operate a bike share program in violation of Plaintiff's exclusivity rights. The parties subsequently agreed to settle the matter, with Defendants agreeing to pay Plaintiff $280,000 in attorneys' fees, waive $50,000 in other fees, and recognize Plaintiff's contractual exclusivity.