Yellow Cab Cooperative (“Yellow Cab”), the largest taxi company in San Francisco, filed for Chapter 11 bankruptcy last month. Yellow Cab is made up of 300 owners and operators with more than 500 cabs. Here is an update on the bankruptcy proceedings.
A meeting was held on February 1, 2016, so that the U.S. Trustee could interview people to be on the Official Committee of Unsecured Creditors for the Yellow Cab bankruptcy. The unsecured creditors who have the top 20 largest claims were invited to attend. The Trustee selected attorneys David Cook, Benjamin Siegel, and Gary Angel to comprise the committee.
The Official Committee of Unsecured Creditors will interview counsel to represent the unsecured creditors. The committee and its attorneys will determine whether to pursue other assets, etc. The committee members have a fiduciary duty to all unsecured creditors, not just the creditors they personally represent. The committee’s goal is to maximize the return for the unsecured creditors.
The Meeting of Creditors is set for February 16, 2016, at 9:00 a.m., at the U.S. Trustee Office, 235 Pine Street, Suite 850, SF., CA. This is the opportunity for the creditors (and their counsel) to question Yellow Cab’s representative under oath. Creditors can ask about assets, etc. If you represent a client who has a claim, you should plan to attend. It will be a good opportunity to obtain additional information.
According to a notice our office received, the Deadline to file a Proof of Claim is May 16, 2016. Even if your client was only recently injured and the statute of limitations is over a year away, you MUST file a proof of claim, or your client could lose his or her rights. Do not wait. (If you received a notice with a different date, comply with your notice.)
The insurance issue has not been established to everyone’s satisfaction. It appears that if your client was struck by a taxicab that was owned by Yellow Cab, the cab was permissibly “self-insured” and the claim is subject to being discharged in bankruptcy. If the taxicab was owned by the medallion holder and was being used by Yellow Cab, there may be insurance.
Yellow Cab required medallion owners to insure their cabs. In other words, some cases may have insurance and some will not. If your client is lucky, and there is insurance, you can petition the bankruptcy court for relief from the stay if you promise to proceed only against insurance proceeds.
Yellow Cab’s bankruptcy is far from over. We look forward to following the progress of the Committee of Unsecured Creditors. Hopefully our clients will receive justice when this is all over.