Taxi Medallion Litigation-An Update

Here at Shenwick & Associates, we are continuing to monitor litigation regarding the taxi medallion industry.  Earlier this year, the Taxi Medallion Owner Driver Association (TMODA) along with credit unions that invested in taxi medallions and other plaintiffs commenced an action in the U.S. District Court for the Southern District of New York (federal court) against New York City and the Taxi and Limousine Commission (TLC), claiming that the TLC’s rules deny taxi drivers equal protection and due process because Uber and Lyft drivers aren’t required to comply with the same TLC regulations as medallion owners.  That action was dismissed in March, finding that the difference between taxis and alternative services justified the differences in the rules.  That case has been appealed to the Second Circuit Court of Appeals and scheduled for argument on October 24^th, 2017.

In April, the TMODA sent a letter to Governor Cuomo asking for a moratorium on medallion foreclosures.  In May, the TMODA filed an Article 78 proceeding in New York County Supreme Court (which included two taxi drivers as co–plaintiffs), seeking to compel the TLC “to establish and enforce standards to ensure . . . yellow medallion taxicabs, are and remain financially stable.”  A hearing in that special proceeding will be held on October 24^th, 2017.

We will continue to monitor taxi medallion litigation and provide readers of our e-mails and blog with updates.  If you have an underwater medallion or other debtor and creditor and bankruptcy questions, please contact Jim Shenwick.