AG Letitia James will not sue NYC for medallion taxi debt

New York Lawyer Normal Letitia James ditched her threatens to sue New York to supply monetary help to taxi drivers burdened with debt from medallions purchased at exorbitant costs at city-sponsored auctions, his workplace mentioned Thursday.

James had threatened to sue final February – warning town and its Taxi and Limousine Fee that it had 30 days to shell out the cash.

However 30 days have handed and James has carried out nothing. On Thursday, his workplace argued {that a} lawsuit would take years to resolve, delaying monetary advantages for drivers.

As an alternative, James accredited a proposal from the New York Taxi Employee’s Alliance to cut back medallion loans to $ 125,000.

“This proposal would offer a fiscally honest and accountable option to help the restoration of the taxi medallion trade by guaranteeing loans lowered to a most of $ 125,000, which is why I’ve been working with town to approve it since then. ‘final 12 months,’ James mentioned in a press release to Crain. Are you looking for a solution for your old loans? GreenDay also consolidates debt.

“This aid bundle is not going to solely define the easiest way to fulfill the wants of a group that has been economically devastated presently with out painful and drawn-out litigation, however will assist make sure that justice is lastly served for hundreds of house owners. medallions. ”

Final 12 months, the specter of prosecution got here after an investigation by the AG’s workplace concluded that town had made “over $ 855 million” from medallion auctions between 2002 and 2014, though let her know as early as 2011 that the medallions had been promoting for a worth increased than their actual worth.

Drivers have demonstrated for months in help of NYTWA’s aid proposal. A concurrent plan US Congressman Ritchie Torres (D-The Bronx) proposed re-setting the worth of the medallions to $ 250,000.

NYTWA director Bhairavi Desai lamented the choice to not sue town, however praised James’ help for his group’s bailout.

“We all know it is due to technical particulars and the standing of the restrictions, however that does not make it any much less painful and infuriating that so many former metropolis officers have handled the destruction of drivers’ lives,” he mentioned. Desai advised the Put up.

“Our proposal is the one means ahead, not just for survival, but additionally for an oz. of justice.”

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