CHICAGO–Since the end of April, New York-based LOMTO FCU has filed five lawsuits over a total of six medallions owned by five Chicago taxi owner-operators.
The lawsuits allege the defendants are in default on their loans and are seeking about $1.4 million, according to the Chicago Tribune. Overall, the latest litigation brings to 28 the number of lawsuits that LOMTO FCU has brought against cab companies so far this year in Cook County (Ill.) Circuit Court, the Tribune said.
Just as is the case in New York and other metropolitan areas, Chicago taxi medallions now are worth about one-sixth of what they were just four years ago, down to about $60,000 from a peak of $370,000, according to one estimate, the Tribune reported.
"Since the entrance of Uber and other ride-sharing companies into the public passenger vehicle market, Chicago taxicab medallions have consistently lost value," according to one of the lawsuits LOMTO filed since April 28 in Cook County, the Tribune reported. "The value of the medallion will continue to decrease significantly.”
The top price paid for a city cab medallion so far this year has been $100,000, according to city records on medallion sales, the Tribune said.
In its suit, LOMTO is asking for the medallions back, and further saying it is entitled to all proceeds of the businesses in the meantime. It also wants the court to prevent the taxi companies from selling or transferring the medallions, the Tribune said.