A TowLawyer.com subscriber called me last week about a serious problem with a local municipality. About a year ago, he won the bid contract to provide the city towing services. Recently, however, an insurance company complained about the amount of a tow bill that it had paid for a city-ordered tow. The city recommended that the tow operator refund part of the bill. The tow operator – who felt that his invoice was fair and in compliance with the contract – refused to pay the city’s recommended refund. A few days later, he received a letter from the city manager advising that his towing contract, which still had over two years left on it, was being cancelled in thirty (30) days. That is why he contacted me through the “Talk to a Tow Lawyer” feature on the website.
If used correctly, the MCS-90 endorsement can be a valuable asset in getting tow bills paid. Therefore, tow companies would be wise to learn what it is, what it is not, and how to use it.
The tow business involves expensive equipment and employees that are compensated to operate it. A tow company’s profit margin is dramatically affected by how well this equipment operates. It might make “sense” that a tow company should be able to charge its employees for damage they cause to company property. Unfortunately, these is not always a place for “sense” in the law and, as a result, often times a company charging an employee for damages to company property is illegal.