At TowLawyer, the most common legal issues we see are collections issues. Tower’s getting stiffed on tow bills are a real problem from coast to coast. With the costs of equipment, employees, insurance, etc. rising every day, collecting on every tow bill that is “collectable” is absolutely vital. Here are a few tips.
I don’t need to tell you that the tow industry is unique. A lot of the work performed is done away from the tow lot and at odd hours, often in the middle of the night. For this reason, tow truck drivers taking their trucks home at night is common place for convenience reasons. If a wreck occurs in the middle of the night, often times the driver is better able to respond from his house than from the lot. But, believe it or not, the practice of taking the truck home at night does create some legal issues.
Some of my favorite cases are tow companies that are either selling their business or purchasing another business. The reason I enjoy this kind of work is that (usually), no one is mad or sad. No one has been stiffed on a tow bill. No one has been hurt or killed. Instead, the parties are entering into a transaction which will hopefully make them money, which makes them happy.
The other day, I received another phone call from a tow company being sued for violations of the Fair Labor Standards Act (FLSA), which regulates minimum wage, overtime pay, and record keeping for most employers. Every time I get a call such as this, I experience two competing emotions: I am sad for the tow company getting sued because I know the road ahead will be wildly expensive and likely not end with a good result. However, I also experience a twinge of anger at the tow company for not implementing basic measures to avoid these types of lawsuits.
I had a client tell me an all too familiar story the other day. His tow company was in a dispute with a trucking company over the amount of the bill. While the dispute raged on, the tow company continued to hold the truck, trailer, and cargo. One day when push finally came to shove, the tow company received a letter from a fancy downtown law firm threatening to sue the tow company for replevin and other causes of action if the tow company did not release the truck, etc. while the dispute over the bill continued.
Believe it or not, some of the most contentious cases I’ve had for tow companies have been legal issues surrounding their municipal zoning. Zoning and ordinance are designed to control what kinds of activities can occur within a particular “zone.” Some uses, such as residential or light retail activities, are permitted in almost any zone. However, other uses, such as salvage yards or waste disposal facilities, will only be allowed in isolated areas that are heavily regulated.
Perhaps the 4th of July has me feeling a little nostalgic…and a lot thankful. In 2004, I was one month into my first ever lawyer job. The firm I worked at represented nothing but huge insurance companies. There was no client contact. As such, I didn’t feel like I was helping anyone, which was the reason I told myself I wanted to be lawyer.
In May, 2017, another tow truck driver was killed in the line of duty in Killeen, Texas. Every time a tow truck driver is struck, well intentioned tow truck drivers hit the streets promoting Move Over Laws and urge the public to Slow Down and Move Over.
The United States Supreme Court has declined to hear an appeal from the Owner-Operator Independent Drivers Association (OOIDA) regarding the ELD Mandate. Though there are additional efforts underway to further challenge the Mandate, according to several news sources, these efforts are likely to fail. Thus, tow truck companies would be wise to understand the ELD Mandate and consider compliance options.
In the last several years, AutoReturn has become a serious player in municipal towing. If you have not heard of them, you probably will soon as AutoReturn now operates in several major cities, including Kansas City, Missouri. AutoReturn markets itself as the solution to the municipal tow industry’s problems of long tow wait times, vehicle damage, property loss, low levels of reporting and accountability, conflicts of interest, and plenty of unhappy customers. AutoReturn purportedly cures these issues by implementing increased oversight to each city it serves, which reduces response times and increases city and customer satisfaction.
