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Bio Docket Sheet
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Background Brief: In the wake of the TLC's pronouncing "Operation Refusal" in November 1999, taxi drivers filed a class action lawsuit seeking a declaration that the TLC's action was illegal and unconstitutional. The case is titled Padberg et al. v. McGrath-McKechnie et al. John "Jack" Padberg, who had driven a taxi for 26 years at the time of his suspension in Feb. 2000, is the lead plaintiff in the action. The primary defendants are Rudolph Giuliani, former TLC chairwoman and political operative Diane McGrath-McKechnie, and her loyal counsel Matthew Daus. The case number is 00-civ-3355 (RJD). Operation Refusal encompassed two policies-- both lawless and both enforced by hopelessly biased TLC judges. The first was the summary suspension of hack licenses without a hearing of any kind. Suspensions, coupled with the temporary confiscation of the taxi, were based on the allegation by a TLC inspector that the cabbie "refused" service to a passenger. The second policy had the TLC seek permanent revocation policy of the cabbies' licenses for the first service refusal offense. State law and TLC regulations, in fact, permit revocations only on the third offense. On March 6, 2006, on the day the trial was to begin, the cabbies and the TLC reached a settlement that provided that the TLC would pay the cabbies $7 million, plus attorneys’ fees and costs. (see below) Background:
Then Mayor Rudolph Giuliani, accompanied by then TLC Chairwoman Diane McGrath-McKechnie, announced Operation Refusal in Nov. 1999, when the Mayor was mulling a run for the U.S. Senate. The mayor acted in response to complaints by movie star Danny Glover that cabbies would pass him by because he is black. As Glover's protest gained nationwide publicity, mayor took control and had the TLC react as never before. Operation Refusal authorized stings in which pairs of TLC inspectors, one white, the other black or Hispanic, would hail cabs simultaneously in an effort to catch drivers who allegedly bypassed minority customers. When the cabbie answered the hail, the inspectors would ask to be driven to an obscure, possibly dangerous or distant location. The case against the driver was in all cases based on the word of these inspectors, the same folks who cuffed and arrested CBS newsman Mike Wallace. Though Operation Refusal was billed as an effort to combat "racism" amongst cabbies, the TLC was not required to charge or prove bias to revoke a driver's hack license. Evidence unearthed in the litigation indicates that the vast majority of suspensions and revocations were for so-called "destination" refusals. The rule barring "service refusals" of all types is of longstanding. But so too are the penalties for violating that rule. The taxi drivers alleged the TLC ignored the penalty provision largely for political reasons. They also alleged that the on-the-spot suspensions without hearings that Operation Refusal demanded were unconstitutional. The Rulings of The OATH Judges: Soon after the policy was announced, administrative law judges for the city's Office of Administrative Trials and Hearings (OATH) issued a series of rulings holding that the Operation Refusal penalty scheme was not authorized. But the OATH judges had no means for enforcing their orders. The TLC's non-executive commissioners, who, apart from the commissioners, serve without pay, also rejected Ms. McGrath-McKechnie's policy. At one meeting in July 2000, the commissioners registered eight separate near unanimous votes against the revocation policy. Still, the chairwoman would not alter the agency's course. At least 100 drivers had their licenses revoked; more than 500 (perhaps even 1000) were summarily suspended. Preliminary Injunction: In August 2000, U.S. District Judge Raymond J. Dearie ruled that the summary suspensions were unconstitutional in a preliminary opinion in the Padberg case. But, despite Dearie's ruling, chairwoman McGrath-McKechnie persisted in enforcing her policy. Meanwhile the TLC started avoiding the OATH courts. Instead it brought Operation Refusal charges before its own administrative law judges. The TLC's own judges endorsed the commission's subversion of the law as a matter of "policy." Summary
Judgment: In
a 2002
ruling, Judge Dearie, who sits in Judge Dearie also cleared the way for the taxi drivers' lawyers to take discovery of evidence that the TLC judges were systemically biased against the drivers. Additional stays of discovery ensued. But Magistrate Judge Steven Gold cleared the way for the taxi drivers' lawyers to start taking depositions in January 2004. Those depositions were long-delayed as the TLC asked-- just before they were to begin-- for the parties to agree to mediation of the entire dispute. In December 2003, the parties signed what appeared to be a stipulation of settlement. But the TLC tried too many times to change the deal, and the agreement had to be abandoned. The Mayor's Testimony; Corruption of the Judges: At long last, the plaintiffs have been able to depose present and former TLC chairpersons and former Mayor Giuliani. The plaintiffs' clams have grown demonstrably stronger. The duplicity and recklessness of TLC and City Hall officials has become manifest. Just recently, the TLC produced internal documents (which should have been produced years earlier) that show that the TLC itself knew the Operation Refusal policies were illegal all along. In addition, the drivers have demonstrated the systemic corruption of TLC judges. These judges are at-will employees, paid on a day-rate, who are hired by the TLC, supervised by the TLC, instructed by the TLC on legal matters, and can be readily fired by the TLC. No surprise, then, that they do the TLC’s bidding. The drivers are now readying to assert additional claims, have moved for an order declaring the TLC courts unconstitutional. Judge Dearie has ordered that the trial will start on March 6, 2006 and that the cabbies could assert additional claims that could win the whole case. The taxi drivers will seek millions of dollars in compensatory damages and as well as punitive damages. Settlement: On March 6, 2006, on the eve of trial, the City of The settlement provides: --Cabbies whose licenses were suspended will be paid $121.50 per day for the duration of their suspensions. About 500 cabbies were suspended and the average suspension lasted 62 days. --Cabbies whose licenses were revoked will be paid an additional $26,000 each. --The TLC will refund all fines paid during the course of Operation Refusal. --The City will pay the cabbies attorneys’ fees and court costs. For press coverage of the settlement, CLICK HERE.
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