Valleywide : Revocation of Taxi Franchise Uncertain

An attempt by Los Angeles city transportation officials to revoke the operating franchise of one of two Valley taxi firms may become bogged down in a legal morass.

The city Transportation Commission recommended in June that city officials revoke the franchise from the San Fernando Valley Checker Cab Co., citing the firm’s failure to provide promised services, such as a computerized dispatching system and seven wheelchair-accessible cabs.

But cab company representatives urged the city to halt the revocation proceedings to allow them to sell the firm to United Independent Taxi Drivers, a Downtown taxi company.

The commission ignored the request and referred the recommendation to the City Council’s Transportation Committee, which also recommended the revocation. The next step would have been a vote of the full council.

But last month, San Fernando Valley Checker Cab Co. filed for bankruptcy, and company representatives now say the bankruptcy filing protects them from all creditors and prohibits the city from revoking the franchise.

On Thursday, the Transportation Commission delayed a decision on an interim taxi plan for the Valley due to the legal problems raised by the bankruptcy filing.

After the meeting, senior transportation engineer Alan Willis said he could not comment on the city’s legal strategy. But he added that the city plans a hearing in Van Nuys on Sept. 21 to hear public comments on the need for taxi service in the Valley.