As a result of an $8 Million Dollar verdict, Yellow Cab in San Francisco is considering filing Chapter 11 Bankruptcy. This move comes 6 months after the verdict found them responsible for the brain Injury and partial paralysis suffered by a passenger in a Yellow Cab vehicle.
Yellow Cab, like the entire taxi industry has seen its business ravaged by companies like Uber and Lyft who charge lower fares and can flood the street with cars at a moment's notice. These new companies also benefit from looser restrictions. Yellow Cab has tried to duck liability by claiming that their drivers are independent contractors and that argument echo's the claim that both Uber and Lyft drivers have made in California courts and are asking to be classified as employees. The lawsuit by Lyft and Uber drivers is waiting for its day in court as well.
It's interesting and terrifying to note that Yellow Cab only carries $1 Million in liability insurance and that's only a fraction of the $8 Million dollar judgment. In fact the Attorney in that case calls that "grossly underinsured." Even in the past when Yellow Cab has been hit with lawsuits they have not increased their insurance limits and instead pretend that they don't own or operate many of the cabs and then hang their drivers and passengers out to dry claiming the drivers are independent contractors. While the injured party in this case would have a voice in bankruptcy court that adds a layer onto what is already a sad situation.
A similar situation happened in Chicago where Yellow Cab lost a $26 Million dollar verdict and in that case they filed for Bankruptcy less than 9 hours after the verdict was read in court. Yellow Cab in San Francisco asserts that business and fares are strong with an average of 15,000 people riding in a Yellow Cab on average.
This is another great reason to have as much insurance as you can reasonably afford. Your car insurance follows you and in a case like a ride in Uber, Lyft or even Yellow Cab you will have insurance that you can use and count on. As we incorporate new services into our lives that cost less money and are seemingly better it is wise to look at the ramifications and how they affect you.
We help with serious issues that require serious representation. We are the Law Offices of Guenard & Bozarth. We have over 70 years of experience on our legal team and we also have a former insurance company defense attorney in our plaintiff's only law firm. Call GB Legal 24/7/365 at 888-809-1075 or visit www.gblegal.com We Can Help!