News Archives

Apr

2018

Jonathan Joseph Interviewed by CBS 5 KPIX-TV Concerning SFMTA Taxi Medallion Lawsuit Filed by Joseph & Cohen

San Francisco, CA — On Tuesday, March 27^th, Joseph & Cohen filed a lawsuit in the San Francisco Superior Court against the San Francisco Municipal Transportation Agency (SFMTA) on behalf of San Francisco Federal Credit Union (SFFCU), seeking $28 million in compensatory damages arising from defaulted taxi medallion loans and the SFMTA breaches and failures in connection with the transferable taxi medallion market in San Francisco.

Jonathan D. Joseph, Joseph & Cohen’s Founder and Managing Partner, recently spoke to Wilson Walker of KPIX-TV CBS 5 in an exclusive interview about the significance of the lawsuit.

Below is a link to the interview, which aired on March 28^th:
Credit Union Sues San Francisco Over Taxi Driver Loans

Joseph & Cohen Files Suit Against SFMTA for San Francisco Federal Credit Union Over Taxi Medallion Meltdown

San Francisco, CA — On March 27, 2018, Joseph & Cohen, Professional Corporation, filed a lawsuit in the San Francisco Superior Court on behalf of San Francisco Federal Credit Union (the “Credit Union” or “SFFCU”) against the San Francisco Municipal Transportation Agency (“SFMTA”), seeking $28 million in compensatory damages from defaulted taxi medallion loans.

As alleged in the complaint, in 2010, then-Mayor Gavin Newsom was facing a large budget shortfall and instructed the SFMTA to monetize the City’s taxi medallions. The price was subsequently set at $250,000 each. Taxi medallions are city-issued permits that authorize taxi drivers to operate a taxi in San Francisco. Until 2010, medallions were free and were awarded to taxi drivers based on seniority. While drivers often had to wait 10 to 15 years to receive their medallion, the free medallions permitted drivers to earn a good livelihood. A medallion holder could also rent it out to other licensed taxi drivers to earn passive income when they weren’t driving. This meant that drivers could live in or around San Francisco and raise families with their earnings.

The SFMTA was aware that monetizing and selling “transferable” medallions to drivers for $250,000 was a steep price, so they marketed the medallions as “investments” that could be resold in a marketplace created and managed by the SFMTA. In search of a solution to enable drivers to finance their purchases, the SFMTA asked SFFCU to partner with it to offer affordable loans to help drivers pay for the medallions. Based on significant assurances, City regulations, and promises in written contracts between the Credit Union and the SFMTA, SFFCU agreed to provide reduced rate loans to the drivers since City officials had agreed they would ensure the viability of the medallion market.

The City sold or retransferred approximately 700 medallions resulting in revenues of over $63 million. But once San Francisco allowed Uber and Lyft to operate in San Francisco without subjecting them to enforcement, safety and other reasonable regulations thousands of Uber and Lyft cars poured into the City. City officials claimed they were unable to regulate Uber and Lyft based on the CPUC’s statewide regulations, but this isn’t accurate. As alleged in the complaint, the City has the legal authority under California law to regulate Uber and Lyft on a side-by-side basis with CPUC rules. Despite having a contractual obligation to take any steps necessary to protect their own transferable medallion market, the City and the SFMTA failed to take meaningful actions to protect the medallion market, the taxi drivers and the Credit Union.

As Uber and Lyft grew, taxi earnings fell precipitously and many non-medallion owning drivers left the industry. Some began driving for Uber and Lyft since all they needed to do was download an app to sign up. These days, after expenses, a medallion owner may be lucky to earn $50 during a ten-hour shift. Medallion owners started struggling to make loan payments and around one hundred drivers have defaulted. By early 2017, due to the SFMTA’s failure to uphold its stated mission to “promote a vibrant taxi industry through intelligent regulation, enforcement and partnership,” the medallion market had completely failed and the hard-working taxi drivers and Credit Union were left holding toxic assets.

The Credit Union’s lawsuit claims, among other things, the SFMTA failed to satisfy its promises under written contracts with the Credit Union and the San Francisco Transportation Code, misled the Credit Union and reneged on its promise to repurchase the medallions as outlined in the complaint, which is available at the link below. The lawsuit states causes of action for breach of contract, breach of mandatory duties under the San Francisco Transportation Code, breach of the implied warranty of good faith and fair dealing, breach of fiduciary duty and negligent misrepresentation.

Since inception of the Credit Union’s agreement to provide financing for the SFMTA’s program, SFFCU ended up originating $125 million in medallion loans for more than 700 medallion purchases. Now, as result of the City’s failures, it has had to foreclose on 99 medallions while over four hundred other drivers seek to surrender their medallions. As a remedy, among other things, the lawsuit seeks compensatory damages of $28 million.

To learn more, click here to read the lawsuit filed by Joseph & Cohen.

Kristina Del Vecchio Rejoins Joseph & Cohen As Partner

SAN FRANCISCO, CA – November 1, 2017. Joseph & Cohen, Professional Corporation, announced today that attorney Kristina Del Vecchio has re-joined the Firm as Partner.

Ms. Del Vecchio joins the Firm from CIT Group Inc. (NYSE: CIT) where she was Director & Senior Counsel. CIT is a financial holding company, and its principal subsidiary is CIT Bank, N.A. (formerly known as OneWest Bank NA).

As an accomplished advisor and litigator for banks and their holding companies, credit unions and other financial services companies, the addition of Ms. Del Vecchio augments and expands the Firm’s core financial institutions capability. The breadth of her experience encompasses mergers and acquisitions, enforcement and regulatory matters, antitrust, bankruptcy and insolvency matters, credit card, student loan, auto and mortgage lending litigation, regulatory change and risk management, and compliance with state and federal financial services, banking, credit union and consumer protection statutes and regulations.

Jonathan Joseph, Joseph & Cohen’s Managing Partner, stated “Kristina Del Vecchio has a rare combination of banking and credit union industry experience and talent that many of our clients will find very appealing and which will no doubt attract new financial institution clientele. We’re delighted to welcome her back to the Firm as a Partner.”

Ms. Del Vecchio added “Although I enjoyed spending the past few years as in-house counsel with CIT, I am excited to re-join my colleagues at the Firm to provide financial services, transactional, compliance, and regulatory advice to the Firm’s clients and look forward to working with them to attract new clients while also expanding the range of legal services offered.”

Ms. Del Vecchio has served as an attorney with the Credit Union National Association (CUNA), the largest national trade association for state and federally chartered credit unions. While at the CUNA, she represented the interests of credit unions before Congress and federal agencies, particularly the NCUA, Consumer Financial Protection Bureau (CFPB), Department of the Treasury and Federal Housing Finance Agency.

Ms. Del Vecchio also previously was an associate with Weil, Gotshal and Manges, LLP, in Washington, DC and Stroock & Stroock & Lavan, LLP in Los Angeles.

Joseph & Cohen, Professional Corporation, is a Financial Services and Litigation Boutique headquartered in San Francisco that emphasizes complex banking, corporate and financial services matters, regulatory and bank enforcement defense, private equity, bankruptcy and insolvency, employment and commercial litigation services. Joseph & Cohen is known for sophisticated expertise, extraordinary commitment to clients, relationship-based services, and a range of specialized skills typically found only in the largest American law firms.

For additional information about the Joseph & Cohen, Professional Corporation, please visit our website at www.josephandcohen.com.

Press Contact: Jonathan Joseph at Joseph & Cohen, 415-817-9200 or jon@josephandcohen.com.

Joseph & Cohen’s Jeff Lederman Ranked as BTI Client Super All-Star

SAN FRANCISCO, CA – February 16, 2017. Joseph & Cohen, Professional Corporation, announced today that senior litigation partner Jeffrey J. Lederman was recognized by BTI Consulting Group as one of only eight super all-star attorneys in the United States. BTI Consulting Group’s 2017 annual guide is unique as it identifies the select few attorneys that command the attention of General Counsel and legal decision makers who are truly influencing and changing the legal industry.

Mr. Lederman was one of eight attorneys named a Client Super All-Star from BTI’s 2017 list of 319 attorneys from 160 law firms nationwide who were recognized for superior client focus, outstanding results, unmatched business understanding and reinventing the client relationship. The prestigious group of eight Super All-Stars were the only attorneys in the country recognized by multiple influential General Counsel and legal decision makers. Lederman, however, was the only attorney on the list from a boutique law firm.

The BTI Client Service All-Stars List is derived from in-depth, independent interviews with hundreds of corporate counsel and executives at Global 500 and Fortune 1000 organizations. It is the only continuous, independently researched benchmark study of client expectations and needs in the legal industry. Attorneys are nominated exclusively by unprompted submissions and finalists are selected based on exceptional commitment to client needs, innovation, understanding of clients’ business, exceptional legal skills, value, and achieving outstanding results.

This is the third time Mr. Lederman has been nominated as a Client Service All-Star, having previously been nominated in 2011 and 2016. For 2017, Mr. Lederman was nominated by multiple clients, including by a Leading Technology Company in connection with his litigation practice, who described Mr. Lederman as “wicked smart, strategic, with a willingness to innovate.

Mr. Lederman said of his nomination, “I believe client service is at the heart of long-term relationships with clients, and it is perhaps the most important aspect of the practice of law, so it is truly an honor to be recognized as a BTI All-Star for the third time, and as a BTI Super All-Star in 2017.”

Jonathan D. Joseph, Joseph & Cohen’s Founder and Managing Partner, added, “We founded the firm with the belief that a boutique firm with exceptional attorneys could compete against any AmLaw 100 Law Firm. That Jeff Lederman is the only Super All-Star from a boutique law firm validates our belief and supports our continuing effort to deliver absolutely the best service, outsized value and outstanding results to firm clients every day.”

Visit www.BTIConsulting.com for more information about this prestigious honor and for a complete list of All Stars.

Joseph & Cohen, Professional Corporation, is a Financial Services and Litigation Boutique headquartered in San Francisco that emphasizes complex banking, corporate, technology and financial services, regulatory and bank enforcement defense, private equity, bankruptcy and insolvency, employment and complex litigation and business dispute services. Joseph & Cohen is known for sophisticated expertise, extraordinary commitment to clients, relationship-based services, and a range of specialized skills typically found only in the largest American law firms.

For additional information about the Joseph & Cohen, Professional Corporation, please visit our website at http://josephandcohen.com/.

Press Contact: Jonathan Joseph at Joseph & Cohen, 415-817-9200, ext. 9 or jon@josephandcohen.com.

Joseph & Cohen Successfully Represents San Francisco Credit Union in Precedent Setting Case under the Americans with Disabilities Act

On August 2, 2016, San Francisco Federal Credit Union based in San Francisco (“Credit Union”) and Disability Rights Advocates based in Berkeley (“DRA”) announced a precedent-setting settlement agreement which resolved threatened claims under the Americans with Disabilities Act of 1990 (“ADA”) and the California Unruh Act. Q2 Software, Inc. (“Q2”), based in Austin, Texas, a digital banking services leader, was also a party to the agreement.

Joseph & Cohen, San Francisco, CA, acted as outside counsel for the Credit Union. Pursuant to the agreement, the Credit Union and Q2 agreed to work together with DRA to ensure that the Credit Union’s website, online banking services and mobile apps are accessible to people who are blind or have vision disabilities.

The parties agreed upon a remediation plan which is expected to be implemented in several phases through 2019 by conforming to the Web Content Accessibility Guidelines 2.0 AA (“WCAG 2.0 AA”) standards published by the World Wide Web Consortium, better known as W3C. The WCAG 2.0 AA accessibility guidelines are available at www.w3.org/TR/WCAG/.

These accessibility standards ensure that blind people can use websites and online banking services. Many blind and low vision individuals use assistive software called screen readers to navigate digital content on computers and mobile phones. The software converts screen text into audible speech or digital braille, and once website and online banking applications have been coded properly, the Credit Union’s website, online banking services, and mobile apps will be accessible to individuals with vision disabilities.

Jonathan D. Joseph and Jonathan Cohen represented San Francisco Federal Credit and were responsible for negotiating and settling the matter.

For additional information, links to the initial Press Release and Settlement Agreement are below:

Press Release: San Francisco Federal Credit Union Leads the Way to Transform Online Banking to Better Serve Customers with Vision Disabilities

Settlement Agreement: Mediation Settlement Agreement and Release

Joseph & Cohen, Professional Corporation, is a Financial Services and Litigation Boutique headquartered in San Francisco that emphasizes complex banking, corporate, technology and financial services matters, regulatory and bank enforcement defense, private equity, bankruptcy and insolvency, employment and complex business dispute services. Joseph & Cohen is known for sophisticated expertise, extraordinary commitment to clients, relationship-based services, and a range of specialized skills typically found only in the largest American law firms.

For additional information about Joseph & Cohen, Professional Corporation, please visit our website at http://josephandcohen.com/.

Joseph & Cohen Partner Named 2016 BTI Client Service All-Star

SAN FRANCISCO, CA – February 9, 2016. Joseph & Cohen, Professional Corporation, announced today that litigation partner Jeffrey J. Lederman was named to the prestigious BTI 2016 Client All-Star List as one of the nation’s absolutely best attorneys. Lederman was one of only 312 attorneys recognized for superior client focus, outstanding results, unmatched business understanding and reinventing the client relationship.

BTI Consulting Group’s annual Client Service All-Star honor is a unique spotlight on attorneys who deliver superior client service because no attorney or firm can self-nominate. In its publication, BTI stated: “312 attorneys stood out as absolutely best at client service. Not just great – but head and shoulders above the rest as defined solely by clients.” The only way to become a BTI Client Service All-Star is for corporate counsel to single out an attorney for client service exceeding all others.

This is the second time Mr. Lederman has received the honor, having previously been nominated in 2011. For 2016 Mr. Lederman was nominated by a Leading Technology Company in connection with his litigation practice. A mere 163 domestic and international law firms had attorneys who made the grade.

Mr. Lederman said of his nomination, “I believe client service is at the heart of long-term relationships with clients and is perhaps the most important aspect of the practice of law, so it is truly an honor to be recognized as a BTI All-Star for the second time.”

Jonathan Joseph, Joseph & Cohen’s Managing Partner, added, “That Jeff Lederman stands out as a Client Service All-Star compared to other lawyers nationwide is no surprise within Joseph & Cohen, as we witness his passion to deliver absolutely the best service, outsized value and outstanding results to firm clients every day.”

Click here for more information about this prestigious honor and for a complete list of All Stars.

Joseph & Cohen, Professional Corporation, is a Financial Services and Litigation Boutique headquartered in San Francisco that emphasizes complex banking, corporate, technology and financial services matters, regulatory and bank enforcement defense, private equity, bankruptcy and insolvency, employment and complex business dispute services. Joseph & Cohen is known for sophisticated expertise, extraordinary commitment to clients, relationship-based services, and a range of specialized skills typically found only in the largest American law firms.

For additional information about the Joseph & Cohen, Professional Corporation, please visit our website at http://josephandcohen.com/or Facebook at http://www.facebook.com/josephandcohen.

Press Contact: Jonathan Joseph at Joseph & Cohen, 415-817-9200, ext. 9 or jon@josephandcohen.com.

Joseph & Cohen Expands Its Banking Practice – Janet Walworth Joins As Of Counsel

SAN FRANCISCO, CA – July 15, 2015. Joseph & Cohen, Professional Corporation, announced today that Janet Walworth has joined the Firm’s banking and transactional group as Of Counsel. With over 30 years of experience as a commercial lending, transactional and restructuring lawyer, Ms. Walworth deepens Joseph & Cohen’s boutique banking industry group which focuses on regulatory, corporate, transactional and litigation for banks, credit unions and other financial service companies.

Janet Walworth currently represents major money center banks, regional and community banks and other financial service companies. She is a skilled secured lending lawyer with expertise in real estate and personal property secured loans and factoring. Ms. Walworth has a gift for transactional work premised on her ability to forge relationships with her clients. She brings a genuine interest in and understanding for the business and legal issues involved in every matter and is committed to getting the right results for her clients.

Jonathan Joseph, Joseph & Cohen’s Managing Partner, stated, “I’m thrilled to have Janet Walworth join our banking group. With her years of experience in the secured lending space, we expect our financial institution clients will be clamoring for her to help them structure and consummate secured loans. Joseph & Cohen can now offer our banking clients an expanded set of services including corporate, regulatory, secured lending, restructurings and commercial and employment litigation.”

Ms. Walworth added, “I’ve known some of the partners at Joseph & Cohen for years and believe that my secured lending and transactional expertise complements their existing practice extremely well. I’m excited because my existing clients will benefit from the well-known banking industry attorneys comprising the banking practice group at Joseph & Cohen.”

Prior to joining Joseph & Cohen, Ms. Walworth most recently served as Of Counsel for Greenfield Draa & Harrington LLP in San Jose. She earned her L.L.M in Intellectual Property Law from Santa Clara University School of Law in 2012 and was awarded a J.D. from University of San Francisco School of Law, with Honors, in 1979. She is a Member of the McAuliffe Honor Society and received an A.B from the University of California at Berkeley, Magna Cum Laude, 1975 with a major in Journalism and a minor in English Literature.

Ms. Walworth is a member of the State Bar of California and admitted to practice before the U.S. District Court, Northern District of California and Eastern District of California.

For additional information about the Joseph & Cohen, Professional Corporation, please visit our website at http://www.josephandcohen.com or Facebook at www.facebook.com/josephandcohen.

Press Contact: Jonathan Joseph at Joseph & Cohen, 415-817-9250 or jon@josephandcohen.com.

Jon Cohen and Kristina Del Vecchio Present at Consumer Financial Services Committee Panel on Consumer Arbitration Clauses

SAN FRANCISCO, CA – October 07, 2014. Joseph & Cohen, Professional Corporation, announced today that two of the firm’s attorneys, Jonathan M. Cohen, Senior Partner, and Kristina Del Vecchio, Of Counsel, were selected by the California Bar Association to speak at their Annual Convention in San Diego. The Firm’s attorneys participated in the Consumer Financial Services Committee program entitled “New Developments in the Enforcement of Consumer Arbitration Clauses” on September 14, 2014.

Ms. Del Vecchio moderated the panel of speakers that included Jonathan Cohen, Bill Webb of Webb Legal Group, and Scott Pearson of Seyfarth Shaw LLP. The panel discussed the current state of arbitration clauses in consumer financial services contracts and recent developments post-Concepcion (AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011)).

Their discussion, which was videotaped by the California State Bar and will be offered for MCLE credit, focused on class action arbitration and waivers, drafting tips, recent litigation surrounding such clauses and what to expect in the future, particularly given the Consumer Financial Protection Bureau’s authority in this area. Consumer arbitration has undergone radical change as a result of recent US Supreme Court and California Court of Appeals decisions and every attorney should know how it will affect their clients.

Ms. Del Vecchio, Chair of State Bar Consumer Financial Services Committee, said of her experience, “The panel was outstanding; we also received several excellent questions from our audience.”

Mr. Cohen added, “It was an honor to speak at the Annual Meeting about a topic that may seem esoteric but that can drastically alter the outcome of litigation even before a dispute has arisen.”

In addition, on September 9th, Ms. Del Vecchio delivered a 60-minute webinar titled “Spotlight on CFPB Mortgages: Keys to Keeping Up with Federal Standards.”

Hosted by Progressive Business Executive Education, Ms. Del Vecchio’s presentation focused on the continually changing and complex rules of the Consumer Financial Protection Bureau (CFPB). She addressed the CFPB’s January 10th, 2014 “final” ruling requiring mortgage lenders to assess the consumer’s ability to repay mortgage loans before extending credit became effective, a ruling that the CFPB is still in the process of amending.

Ms. Del Vecchio gave insight on how mortgage lenders can remain up to speed on the latest rule, how it impacts the industry, issues that may arise, and what to expect in terms of future changes. A recording of the webinar is available for order. Click here for further details.

For additional information about the Joseph & Cohen, Professional Corporation, please visit our website at http://josephandcohen.com/or Facebook at http://www.facebook.com/josephandcohen.

Press Contact: Jonathan Joseph at Joseph & Cohen, 415-817-9200, ext. 9 or jon@josephandcohen.com.

Kristina Del Vecchio Appointed Chair of Consumer Financial Services Committee – CA State Bar Business Law Section

SAN FRANCISCO, CA – August 12, 2014. Joseph & Cohen, Professional Corporation, announced today that Kristina Del Vecchio has been named Chair of the State Bar of California’s Business Law Section’s Consumer Financial Services Committee.

An accomplished advisor and litigator for banks, credit unions and other financial services companies, Ms. Del Vecchio joined Joseph & Cohen as Of Counsel in January 2014. Del Vecchio previously served as Vice Chair of Communications for the committee, and notes of her new role, “I am honored to have the opportunity to lead this outstanding committee, which is comprised of a variety of impressive attorneys committed to enhancing their practice and awareness of issues affecting the consumer financial services industry.”

Ms. Del Vecchio’s appointment adds to the list of notable positions served by Joseph & Cohen partners in the State Bar of California’s Business Law Section. Founder and Managing Partner, Jonathan Joseph is Chair of the Financial Institutions Committee; and Kenneth Sayre-Peterson, Partner, serves as the Vice-Chairman of Legislation for the Consumer Financial Services Committee.

Additionally, Jonathan Cohen, Head of Litigation at Joseph & Cohen, is slated to speak on a panel, moderated by Ms. Del Vecchio, titled New Developments in the Enforcement of Consumer Arbitration Clauses at the annual State Bar meeting on September 14.

For additional information about the Joseph & Cohen, Professional Corporation, please visit our website at http://www.josephandcohen.com or Facebook at www.facebook.com/josephandcohen.

Press Contact: Jonathan Joseph at Joseph & Cohen, 415-817-9200, ext. 9 or jon@josephandcohen.com.

Jonathan Cohen Quoted in ACAMS moneylaundering.com Article on Directors and Officers Liability Insurance Issues

Joseph & Cohen, Professional Corporation, was featured in a recent ACAMS moneylaundering.com article by Kira Zalan and Colby Adams titled “With Regulators’ Talk of Individual Fines Comes Bankers’ Queries on Insurance.”

Published on June 17, 2014, the article explores why more and more bank compliance officers are exploring the scope of insurance coverage under Directors and Officers (D&O) liability insurance policies to address the rise of regulatory penalties against individual bankers.

The article notes an important and often overlooked reality that many financial institutions and their officers are unaware of the exclusions in their D&O policies, to which Jonathan Cohen, the firm’s head of litigation, was quoted:

“More often than not an officer or director will be surprised by the lack of coverage that they have.”

Joseph & Cohen’s core corporate and regulatory practice includes the representation of federally insured depository institutions and the defense of Officers and Directors of financial institutions in civil damage actions instituted by the FDIC or shareholders and administrative proceedings brought by the FDIC for civil money penalties or other sanctions. Joseph & Cohen also has extensive experience in advising institutions and their Offices and Directors in connection with insurance coverage and related litigation.

For additional information about Joseph & Cohen, Professional Corporation, please visit our website at www.josephandcohen.com or Facebook at www.facebook.com/josephandcohen.