Yesson v. San Francisco Municipal Transportation Agency

224 Cal. App. 4th 108, 168 Cal. Rptr. 3d 212, 2014 WL 721158, 2014 Cal. App. LEXIS 182
CourtCalifornia Court of Appeal
DecidedJanuary 30, 2014
DocketA136527
StatusUnpublished
Cited by3 cases

This text of 224 Cal. App. 4th 108 (Yesson v. San Francisco Municipal Transportation Agency) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yesson v. San Francisco Municipal Transportation Agency, 224 Cal. App. 4th 108, 168 Cal. Rptr. 3d 212, 2014 WL 721158, 2014 Cal. App. LEXIS 182 (Cal. Ct. App. 2014).

Opinion

Opinion

KLINE, P. J.

INTRODUCTION

Tina Yesson, successor trustee of the John C. Enrico 1999 Revocable Living Trust, appeals from the order of the Sonoma County Superior Court denying her petition for an order determining that she, as the trustee of her father’s trust, had the right to sell the taxi permit (also known as a taxi medallion) held by her father at the time of his death, under the Taxi Medallion Sales Pilot Program (Pilot Program) adopted by respondent San Francisco Municipal Transportation Agency (SFMTA). The court concluded that neither the medallion nor the right to sell the medallion became the property of the decedent or of his estate or trust as a result of SFMTA’s authorization of the Pilot Program. We shall affirm the trial court, but on the alternative grounds found “persuasive” by the trial court, that the Pilot Program did not go into effect until March 28, 2010, after Enrico’s death.

BACKGROUND 1

On December 12, 1968, the San Francisco Police Commission granted John C. Enrico permit No. 846, to operate a taxicab in San Francisco *112 (sometimes referred to as the City). Under then existing city law, taxi permits could be inherited, sold, assigned and transferred.

In 1978, San Francisco voters passed Proposition K, an initiative ordinance establishing a new system of regulation for city-issued taxi medallions. Proposition K barred the inheritance, sale, assignment or transfer of taxi medallions. Under Proposition K, all taxi medallions belonged to the City, had to be held by working drivers, and were distributed as they became available to individuals on the medallion waiting list. In accordance with the requirements of Proposition K, Enrico surrendered his permit to the City and on December 17, 1979, the City issued him taxi medallion No. T-291. His operation of the medallion was subject to the requirements of Proposition K, as well as to additional taxi regulations codified in article 16 of the San Francisco Police Code and subsequently in the San Francisco Transportation Code (Transportation Code). In 1984, the police department approved Enrico’s request to lease medallion No. T-291 to Yellow Cab Company. Enrico leased the medallion to Yellow Cab Company from 1984 until his death in 2010. During this time, Yellow Cab Company paid Enrico a monthly lease fee in exchange for operating the medallion.

In 2007, San Francisco voters passed Proposition A, giving the San Francisco Board of Supervisors the power to transfer regulatory authority over taxi affairs to SFMTA. Authority to regulate San Francisco taxis passed to SFMTA in March 2009. Subsequently, the SFMTA Board of Directors (SFMTA Board) recodified Proposition K’s requirements, as well as additional taxi regulations, in the Transportation Code, division II, article 1100 et seq. Proposition A also gave the SFMTA Board the power to adopt taxi regulations that would override “any prior ordinance,” including the provisions of Proposition K.

By 2009, when SFMTA assumed its regulatory function over the local taxi industry, significant flaws had become apparent in the process by which medallions were issued. It is unlawful to operate a taxi in the City without a City-issued medallion. The demand for medallions far exceeded the supply and medallions were issued to drivers on a waiting list, for a fee of approximately $1,600. Approximately 3,000 names were on the waiting list at the time of trial and people qualifying for medallions had been on the waiting list for about 15 years. A medallion holder is allowed to lease the medallion to a cab company or to a driver. It is thus an income-producing asset for the medallion holder. However, because the waiting list is so lengthy, applicants are often senior citizens by the time they actually receive a medallion. At the same time local law requires that every medallion holder who received a medallion after Proposition K was adopted in 1978, and who is physically able to do so must be a so-called “full-time driver.” That is, the medallion *113 holder must actually drive his or her taxi for at least 156 four-hour shifts, or for 800 hours, during a single calendar year. (Transportation Code, § 1102, 23d par.) The advanced age of many medallion holders can make it difficult, or even unsafe, for them to comply with the City’s legal requirements, especially the “full-time driving” requirement. SFMTA began exploring possible reforms to the Proposition-K-based medallion distribution service, holding multiple town hall meetings to solicit input from various stakeholders.

At a public hearing on February 26, 2010, the SFMTA Board approved resolution No. 10-029, adopting amendments to Transportation Code, division II, article 1100, to implement the Pilot Program. 2 The resolution explained that the “. . . Pilot Program represents an interim measure that would allow the San Francisco taxi industry to gradually transition away from the Waiting List system of Medallion distribution that has characterized the San Francisco taxi industry for 32 years . . .” and that it “represents an opportunity to collect information, monitor results and elicit industry recommendations for the purpose of adopting a long-term Taxi Medallion reform solution . . . .” The resolution enacted Transportation Code section 1109, subdivision (e), stating, among other things: “Any medallion held by a natural person who: (1) has attained or will attain the age of 70 years old or older as of December 31, 2010; or (2) has a bona fide disability ... is eligible for sale in accordance with this subsection (e).” (Transportation Code, former § 1109, subd. (e)(1).) Transportation Code former section 1109, subdivision (e)(3) authorized the director of transportation to set the initial medallion sales price after a public hearing, at a price not to exceed $400,000 and after considering certain specific factors in setting that price. Transportation Code former section 1109, subdivision (e)(6) further stated that “Medallions shall be purchased and sold under the Pilot Program in accordance with procedures adopted by the SFMTA.”

*114 The resolution also stated that “[p]rior to authorizing any Medallion sale, SFMTA staff will return to the Board to inform the Board of the established Medallion Sale Price and to propose additional regulations governing (1) Medallion financing following meetings with potential lenders, and (2) the composition of an industry group to monitor the results of the Pilot Program that will provide recommendations for long-term taxi industry reform . . . .”

On March 23, 2010, Enrico died at the age of 96.

At public hearings held March 30, April 20 and May 4, 2010, the SFMTA Board adopted additional regulations to implement the Pilot Program. On or about April 14, 2010, SFMTA mailed to potentially eligible medallion sellers and buyers a “Notice & Opportunity to Participate in Taxi Medallion Sales Pilot Program,” a “Buyers’ Participation Form,” and a “Sellers’ Participation Form.”

On April 21, 2010, Yesson, a resident of Sonoma County, filled out and signed a “Sellers’ Participation Form” as “Trustee for John Enrico” and mailed it to SFMTA, which received the form on April 28, 2010.

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Bluebook (online)
224 Cal. App. 4th 108, 168 Cal. Rptr. 3d 212, 2014 WL 721158, 2014 Cal. App. LEXIS 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yesson-v-san-francisco-municipal-transportation-agency-calctapp-2014.