Generally, under what is known as the “American Rule,” all parties to litigation are responsible for paying their own attorney’s fees. But a state legislature can, by statute, require the losing party to a lawsuit to pay the winning party’s legal costs in some circumstances. That is referred to as a “fee-shifting” statute.  Under Illinois law, the loser in an unlawful towing case may be required to pay the vehicle owner’s attorney’s fees. In Roberto Lopez v. Rendered Services, Inc., an Illinois appellate court had to decide who the loser is in a successful wrongful towing case.

On June 29, 2016, a Shelby County (Tenn.) jury rejected Proffitt’s claim of self-defense and convicted him of attempted second degree murder. Proffitt was sentenced to fourteen (14) years in prison. He appealed the judgment to the Tennessee Criminal Court of Appeals. In a written opinion issued on December 13, 2018, the appellate court in State of Tennessee v. Joseph Proffitt upheld the jury’s verdict.    Former tow truck driver Arnold remains paralyzed and is confined to a wheelchair. Proffitt currently resides at the Trousdale Turner Correctional Center in middle Tennessee. He has a parole hearing scheduled in July 2020.

Murel Laughlin, owner of Laughlin Wrecker Service, in Greeneville, Tennessee, passed away in January 2014. But he left behind an important court ruling about assessing the value of used tow trucks.

Every automobile loan agreement contains a provision allowing for self-help repossession in the event of default.  If the borrower does not make the scheduled loan payments on time, a repossession agent is sent to pick up the vehicle.  The uniform code on secured transactions provides that a repossession must be accomplished “without breach of the peace.”

When adopting a policy around political discussion, tow companies should distinguish between what an employee can do off the clock versus on the clock. Importantly, an ideal policy should include language that will allow an employer to maintain control over the workplace. Therefore, employers should advise employees that any workplace disruptions, including disruptive political discussions, may be subject to discipline. 

Many tow companies have municipal towing contracts which can be valuable assets.  Depending on the value of the contract, tow companies that possess these contracts are often solicited by other companies who wish to purchase the tow company and its contracts.  In recent years, this has been a particularly common strategy here in Kansas City where municipal tow contracts have become extremely competitive and have been awarded to companies of all shapes and sizes. 

Back in 2013, Morristown towing company owner James Morgan unwittingly got involved in a stolen car ring.   Morgan, a one-truck operator, received a request to impound several dilapidated vehicles. The person requesting the tows indicated that he had bought the vehicles from their owners. It turned out that, in fact, he had not purchased some of the vehicles. He was using Morgan’s towing service to steal the cars.

I bet at the very end of most every agreement your tow company signs, there is a bunch of legal mumbo jumbo that you don’t feel like reading. This is understandable. Truth be told, when I am hired to read contracts, I don’t particularly enjoy reading the fine print either. But you should.

As the year comes to a close, it is time again to reflect back on another great year of being a part of the towing community. It is a pleasure working with everyone and we thank you for the opportunity. We are looking forward to 2019, as TowLawyer is planning on some new endeavors to further serve our members. Best wishes and Happy New Year!