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.”