Texas Attorney General probes relationship between Dallas, Yellow Cab

Taxi regulations

Credit: WFAA

For the last 10 years, the City of Dallas has let Yellow Cab operate without the same level of insurance required of its competitors.



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Posted on May 6, 2014 at 3:47 PM

DALLAS -- Texas Attorney General Greg Abbott is investigating the cozy relationship between the city of Dallas and Yellow Cab.

The inquiry closely follows the narrative of an on-going News 8 investigation which showed, for more than a decade, the city allowed Yellow to operate without sufficient insurance to protect passengers.

Documents obtained by News 8 show Abbot sent a letter to the city on March 31 demanding 15 different categories of information. The letter, called a Civil Investigative Demand, seeks a large variety of communications made between Yellow and the city of Dallas over the last five years.

The Attorney General’s office appears to be interested in issues related to the operating authority the city granted Yellow to conduct business and how the city regulated the company. Included in the demand letter are requests for financial records and information about Yellow’s compliance with insurance coverage requirements mandated by city ordinance.

This is the third government investigation into Yellow stemming from News 8 investigative reports.

The United States Department of Justice and the Texas Department of Health and Human Services are investigating possible violations of Yellow's contract to transport Medicaid patients to their doctor's appointments, under which Yellow has collected $82 million.

E-mail dschechter@wfaa.com