Towing companies that impound vehicles rarely collect their full charges on unclaimed vehicles. Even after deducting the proceeds from the auction sale of the abandoned vehicle, there is usually a large balance, or deficiency, still outstanding for towing, labor and storage fees.
In 1995 Congress passed a law, 49 U.S.C. § 14501 (c)(2)(C), giving state and local governments the legal authority to regulate the price charged for ‘‘for-hire motor vehicle transportation by a tow truck, if such transportation is performed without the prior consent or authorization of the owner or operator of the motor vehicle.’’ So-called “nonconsensual” transportation services that are subject to price regulations have been interpreted to include private property tow-aways and police-ordered towing.
Insurance companies employ individuals on a full time basis to knock down towing bills. Do you employ someone on a full time basis to make sure your bills are correct? Probably not. But there a few basic practices you can put in place now that will certainly help your situation.
At our “Lawyers Tips For Getting Tow Bills Paid” presentation at the 2016 Florida Tow Show, we were fortunate to speak to packed houses on two occasions, which allowed us to meet and listen to tow companies from across the United States. We heard a common complaint: tow companies are being beaten down by insurance companies and consumers who simply don’t want to pay tow bills. We also heard from a great many tow companies that there are very few people who either can or will help tow companies. Well we can and we will!
I would say of all the work I do for tow companies, down time claims are the ones that get tow companies the most fired up. The scenario goes like this: a tow company’s vehicle is hit in an accident and is out of commission for a few weeks. In addition to the damages to the actual tow truck, the tow company also submits a claim for the revenues the truck would have generated had it not been out of commission. This is the “down time.”
I bet I get at least one call a week from a tower wanting help on recovering a “property damage” claim. The term “property damage claim” means different things to different people. It could be a tow truck getting hit and damaged. It could be someone running into a building. However, when I think property damage in the context of a towing claim, I think about the scenario where there has been a motor vehicle accident and a third party’s “property” has been damaged.
One of the first questions I am asked by new tow clients seeking to collect an unpaid tow bill is almost always “if we win, does the other party have to my legal bill?” The answer is usually no. Truth be told, I don’t find this rule of law to make a whole lot of sense to me. However, the “American Rule,” where everybody pays their own legal fees, is alive and well. As a result, suing to collect a light duty tow bill often becomes cost prohibitive. Lawyers are not cheap. If a tow invoice is $500.00 or $600.00, a lawyer’s fees to collect a bill might very well exceed the cost of this invoice.
