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Taxi Drivers Lose Case Over Clean-Air Benefits

SAN FRANCISCO (CN) - The San Francisco Airport Commission cannot be held liable for reducing benefits to cab drivers who drive clean-air taxisto and from theSan Francisco International Airport,an appeals court ruled.

A group of drivers who bought compressed natural gas taxis sued the commission for reducing the benefits in 2003, claiming it breached the original contract.

But the courtfound the contracts invalid and unenforceable, rulingthat holding otherwise"would put San Francisco to a choice between adjusting the incentive program and incurring potential liability for breach of contract, on one hand, and leaving the incentive program and the problems with taxi service at SFO unchanged, on the other.

"Such a holding would impose an impermissible chilling effect on the city's exercise of police power," Justice Haerle wrote. See ruling.

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