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Appeals Board Upholds Settlement
On Veterans Corporate Permits

When the Board of Appeals in 1998 upheld a Police Commission decision refusing to approve stock transfers of Veterans Cab, Veterans’ 25 corporate permits seemed destined for the hands of permit applicants. That’s because Proposition K of 1978 says corporate permits are void if 10 percent or more of a company’s shares are transferred without commission approval.
But Veterans claimed the shares were never transferred, despite the fact that the shareholders in question had died. The city never demanded the permits’ return, and eight years later, the Taxi Commission struck a deal with the company allowing them to keep most of the medallions into the indefinite future.
UTW appealed the settlement to the Board of Appeals. Although the board agreed to hear the appeal, on March 15, it decided to uphold the settlement by a 3-2 vote. It would have taken four votes against the settlement to overturn it.
According to the settlement, Veterans will initially return eight medallions. The others will remain in company hands under a formula tied to the deaths of the company’s seven remaining shareholders. One permit will return upon the first death of a shareholder; three will return upon the deaths of each of the next three shareholders; then three, four and three permits will return as the remaining shareholders pass away.
The formula virtually ensures that some of the permits will be in company hands for decades to come. The oldest Veterans shareholder is 93. The youngest is 45.
National Cab is now operating the Veterans color scheme. The eight medallions to be returned are scheduled for surrender in July.