A New York state judge has overruled the city's plan to sell street hail permits for livery cabs in the outer boroughs and upper Manhattan.

The judge ruled that the city's plan to sell 18,000 livery cab street hail permits violates 'Home Rule' provisions, which protect cities from being interfered with by state legislators. The judge said Mayor Michael Bloomberg overstepped this rule when he got the governor's office involved.

The plan called for over $1 billion in permit sales to cab owners, allowing them to pick up street hails in the outer boroughs and upper Manhattan.

Currently, only yellow cabs can legally pick up street hails. City attorneys say they will immediately appeal the court's decision.