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Contract Cancellation Clauses

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.

By |2017-02-10T19:22:05-06:00October 23rd, 2016|Other Legal Issues|0 Comments
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Making the Employee Pay for Damage to Company Property

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.

By |2017-02-10T19:22:40-06:00October 6th, 2016|Human Resources|0 Comments
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The Use of Social Media in the Tow Business

At the Tennessee Tow Show in Chattanooga, Tennessee, we were asked to lead a discussion on the use of social media in the tow business. The term “social media” can refer to many things but in this context we mean communicating and/or posting information, including photographs, on various internet platforms, including Facebook, Twitter, websites, and blogs. With the advent of the camera phone and the speed in which information may be disseminated on the internet, having a well-crafted social media policy is necessary.

By |2017-02-10T19:22:52-06:00September 28th, 2016|Other Legal Issues|0 Comments
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Not Playing By The Rules

At TowLawyer.com we receive numerous complaints about towing rotation list rules not being enforced. Most rotation lists are governed by written rules and regulations which set forth guidelines for participation such as equipment specifications, response times, minimum levels of insurance, storage yard requirements, and call dispatching protocols. Typically the rules also contain prohibitions against obtaining multiple spots on the list by using bogus company names, skipping calls without good cause, etc. Suspension or permanent removal is normally called for in the event of a violation.

By |2017-02-10T19:23:15-06:00September 19th, 2016|Tow Rotation Lists/Contracts|0 Comments
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Lanktree v. I-70 Towing: Minimum Wage Claims for On-Call Time and How to Avoid Them

A group of disgruntled former tow operators, an unsuspecting tow company, and a commission based payment system where the tow operators were not making minimum wage: the perfect storm of a wage and hour case. Unfortunately, this perfect storm came into fruition for I-70 Towing of Columbia, Missouri in Lanktree v. I-70 Towing, 2011 WL 4729726 (U.S.D. Mo. 2011).

By |2017-02-10T19:23:28-06:00September 14th, 2016|Human Resources|0 Comments
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Good Faith and Reasonable Efforts to Locate a Vehicle’s Owner

When claiming a possessory lien on unclaimed motor vehicles, most state statutes require the tow company to inquire with their state’s Department of Motor Vehicles (DMV) to determine the vehicle’s owners and lienholders. If the DMV’s records indicate “no record found,” most states allow a tow company to proceed with a lien sale if the tow company publishes an appropriate public notice and the subject vehicle is not retrieved in a certain number of days.

By |2017-02-10T19:23:41-06:00September 5th, 2016|Vehicle Impounding & Liens|0 Comments
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Non-Competition Agreements: “I’m Moving On”

As a young boy growing up in a towing family in Tennessee, I remember hearing Hank Snow’s baritone voice warbling over the AM radio in the shop: “I’m a-moving on.” Little did I realize then that “I’m Moving On” could be the theme song for many tow truck drivers.

By |2017-02-10T19:23:55-06:00August 27th, 2016|Human Resources|0 Comments
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Paying Tow Drivers as Independent Contractors: Don’t Do It

Classifying a tow truck driver as an independent contractor is tempting. Independent contractors don’t require worker’s compensation insurance. Furthermore, employers don’t have to deduct withholding taxes, etc. from independent contractor’s paychecks. However, when it comes to classifying tow truck drivers as independent contractors, the towlawyer has some very simple advice: don’t do it.

By |2017-09-07T12:28:40-05:00August 22nd, 2016|Human Resources|0 Comments
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Administrative Fees for Towing and Impoundment: Effective Deterrent or Money Grab?

Consumer complaints about the price of a tow bill are nothing new. Usually, it’s the tow company that is the target of the complaints. However, with the rise of administrative fees being charged by cities, some cities are also drawing the ire of the general public.

By |2017-02-10T19:24:36-06:00August 14th, 2016|Vehicle Impounding & Liens|0 Comments
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