TORONTO - A class-action lawsuit has been filed against Uber and UberX on behalf of cab and limousine owners and drivers in Ontario.

Law firm Sutts, Strosberg LLP says the suit by Dominik Konjevic, a taxicab owner and operator, has been filed as class action with the Ontario Superior Court of Justice.

It alleges Uber is operating its ride-hailing service even though drivers are not licensed as required by the Highway Traffic Act.

The lawsuit seeks $400 million in compensatory damages, $10 million in punitive damages and an injunction prohibiting UberX from continuing to operate in Ontario.

Word of the lawsuit comes on the same day Uber announced it is expanding into several southwestern Ontario communities.

A spokeswoman for Uber Canada calls the suit "protectionist" and says it is "without merit."

"As we saw from a recent court ruling in Ontario, Uber is operating legally and is a business model distinct from traditional taxi services," Susie Heath said Thursday in an email.

Superior Court Judge Sean Dunphy ruled earlier this month there was "no evidence" Uber is operating as a taxi broker or that it breached Toronto city bylaws.

Jay Strosberg, of Sutts, Strosberg LLP, said in a statement the class-action suit is taking a different approach than other actions where the courts ruled Uber does not contravene municipal bylaws.

"We are alleging that UberX and UberXL do not fall into the same category, and are in fact, blatantly in contravention of the Ontario Highway Traffic Act, and detrimental to the ongoing business interests of every taxi and limousine operator in the province," he said.

"The Plaintiff alleges that the defendants conspired to arrange or offered to arrange for these passengers to be picked up by the UberX drivers thereby diverting millions of dollars of revenue away from licensed taxicab, limousine owners and drivers in Ontario and injuring their ongoing legitimate business interests."

The suit alleges that Uber and its UberX and Uber XL platforms knowingly created and control a business enterprise that would harm the business interests of the Plaintiff and the Class Members.

It also alleges that the defendants were unjustly enriched when they collected a portion of the UberX and Uber XL fares which were in contravention of Ontario's Highway Traffic Act that deals with transporting passengers for compensation.

News from © The Canadian Press, 2015