State

Yellow Cab files for bankruptcy after verdict

CHICAGO – Hours after Chicago’s Yellow Cab Co. was hit with a $26 million judgment for a lawyer who suffered brain damage in a crash, the company filed for bankruptcy.

A Cook County jury awarded $25.9 million to Marc Jacobs, a passenger in a Yellow Cab on Aug. 31, 2005, when the driver lost control and slammed into a concrete barrier on Interstate 294.

After the judgment late Tuesday, the company filed for Chapter 11 reorganization in U.S. Bankruptcy Court on Wednesday.

In its filing, company officials said Yellow Cab is “experiencing financial difficulty due to, among other things,” a judgment entered against the company in Cook County Circuit Court. Listed among the company’s creditors are Jacobs and his wife, Deborah.

Plaintiff’s attorney Robert Clifford said the bankruptcy filing means his clients “may never see a dime.”

Loading more

Digital Access

Digital Access
Access nwherald.com and all Shaw Media Illinois content from all your digital devices and receive breaking news and updates from around the area.

Home Delivery

Home Delivery
Local news, prep sports, Chicago sports, local and regional entertainment, business, home and lifestyle, food, classified and more! News you use every day! Daily, weekend and Sunday packages.

Text Alerts

Text Alerts
Stay connected to us wherever you are! Get breaking news updates along with other area information sent to you as a text message to your wireless device.

Email Newsletters

Email Newsletters
We'll deliver news & updates to your inbox. Plan your weekend and catch up on the news with our newsletters.