Getting the Legal Basis for the Lawsuit
A common ground for suing a towing company is illegal towing. Often drivers who’ve parked on private property get towed, only to find that the lot owner had not authorized their vehicle’s removal. Another category of illegal towing is when your vehicle is towed from a public lot, even though the lot has no clear signage on hours of enforcement or "24-hour lot," as the sign in the lot may say. If your vehicle was damaged during towing, this may be another grounds for a lawsuit. Towing companies have much less protection for your car than repair shops do, even though they are retained to keep vehicles in safe condition until they can be returned to their owners. Overcharging is perhaps the most common reason for suing a towing company. Tow trucks may charge hundreds of dollars for one to two hours of work, and the companies may ask for cash , even though state law says they must accept a credit card. There are strict fee guidelines for scenarios such as using special equipment. Other examples of overcharging include not disclosing certain fees until you’re already in the lot (and the operator threatens to leave without your car) and adding arbitrary fees for supposed paperwork.
Examples of the legal terms involved with these three example scenarios are as follows: Illegal Towing Example: This term encompasses parking an unauthorized vehicle on private property without notifying a towing company. Legal Term: Unlawful Detention. Damage Example: If your vehicle is damaged, towed in bad weather, or damaged en route to the impound lot, this is a typical scenario. Legal Term: Negligence. Overcharging Example: If the price of retrieving your vehicle exceeds the price listed in the fee schedule, the price may be considered exorbitant. Legal Term: Unconscionability.
Gather Relevant Facts
Once the claim is filed, the next step is to compile essential evidence that suits the need. The necessary evidence will depend on the circumstances of the situation, but generally speaking, your best options for evidence include photographs, receipts, towing agreements, and witness statements. Your first piece of evidence to gather is photographs, which are useful in establishing the full extent of damages. Take photographs of the following aspects of the situation: Next, gather copies of all receipts associated with vehicular repairs. If your lawyer is working on your behalf, they may obtain all of the invoices directly from the repair shop. Additionally, you’ll need a copy of the towing agreement. This agreement could take the form of the receipt you received from the towing company, which lists your monetary obligations in exchange for vehicle retrieval. It could also take the form of a mobile app agreement, such as Apple PayExpress, or other forms of Payment SDK (Software Development Kit). Lastly, if your lawyer is working on your behalf, the lawyer will obtain statements from witnesses, should these exist. You can also find witnesses in the police report. Be sure to keep a list of witnesses and their information handy so your lawyer can reach out for follow-up statements when needed. Effective organization of this evidence is also crucial to the success of your lawsuit. Write down what the evidence is, where the evidence can be located, and what the evidence proves. For example:
Filing the Complaint with the Small Claims Court
Think of the jurisdiction of small claims courts as a middle ground in the civil court hierarchy. These courts have limited jurisdiction and are typically designed to allow individuals to sue other people or businesses without the assistance of a lawyer. Cases in small claims court involve smaller amounts of money than in a regular civil court. Checks and money orders are the only forms of payment accepted. In small claims court, they act more like an administrative body than a full-fledged court. From the court’s perspective, they try to resolve the case and avoid getting caught up in legal technicalities. Typically, the amount you can sue for will be limited to somewhere between $3,000 and $10,000. Refer to your state’s specific laws when considering this issue.
Try to find out if there is an informal arbitration process in your state with your local courthouse. If not, you may be stuck with going to small claims court. Because these courts don’t have a lot of power, you may find yourself facing several hurdles. One of those hurdles is the jurisdictional issue. Courts cannot simply order a business to pay you money if it doesn’t have jurisdiction over it. The jurisdiction can be determined easily because it pertains to the general location of the company.
The time line for these types of cases is somewhat different from civil court. You aren’t subject to the same constraints that regular courts are under. Most of these cases go to trial in about 60 to 90 days instead of in a year or more. An informal hearing like an arbitration can take place even faster (possibly in weeks). Some states will require you to file a claim with the attorney general’s office, which will provide information about how they proceed with the claim. You’ll need to pay a filing fee, which isn’t refundable if you lose your case.
Usually, the parties involved in a small claims court suit must talk to each other before filing. The opposing parties can negotiate to settle the case without involving the courts. This gives both sides the opportunity to explain the situation to one another and find some sort of resolution on their own. If this negotiation doesn’t work, you’ll receive instructions about where to file the small claims case. A civil website, whether local or through the state attorney general’s office, will give details about how to file the appropriate paperwork. You should contact the courthouse or your attorney if you have questions about what to file.
You’ll need to provide evidence to support your case. You might have receipts that prove you overpaid or photographs proving wrongdoing by the towing company. If you aren’t able to present your evidence persuasively in front of a judge, a small claims court suit may be a waste of time. If you can’t tell the judge exactly what happened, your case will be weak, and the court may dismiss it altogether. This is when providing supporting documents with your complaint becomes important. Check your state’s civil rules of procedure to determine what the courts in your state will accept. Inventories and photographs may be useful in supporting your claim.
Alternative Methods of Dispute Resolution
The court process to sue a towing company can be long, complex and costly. Consider seeking an alternative method of resolving your dispute such as mediation or arbitration. Some of the benefits of mediation or arbitration include the following:
- Alternative dispute resolution (ADR) can be quicker, simpler, and more cost-effective than litigation.
- You are not solely dependent on the opinion of one judge and may have considerable more leverage in your case.
- ADR takes place out of the public eye and offers confidentiality to both sides of the dispute. Court cases and financial records are public record of all to see. If you take your case to ADR you would not run the risk of it coming to the attention of TV stations and newspapers .
- Mediated outcomes can offer you much more than what a judge can order, from not only money, but also an apology, and/or other restitution. A judge is limited to what the law dictates. This is often a very different monetary amount than you would get in court.
- The mediator is a lawyer appointed to help both clients arrive to an amicable solution.
Although mediation has many advantages, arbitration is more formal and binding on both sides. Arbitration is like a private trial. All sides present the evidence to an arbitrator and the arbitrator decides how much compensation should be paid. An arbitrator’s decision is final and carries much more weight than a settlement. If mediation fails, you have the right to seek arbitration.
Engaging a Lawyer
Should I hire a lawyer to sue a towing company? Generally, lawyers are not involved for smaller cases and individuals file lawsuits against towing companies themselves. If you have a really small case that is less than $15,000 and also do not expect to do further investigation into the facts of your case, then it is best for you to proceed without a lawyer. In this scenario, you will outline clearly the facts, your damages, and that you are seeking money damages, and you will deliver your Demand letter to your opponent.
A lawyer can be valuable in a case where it is either complex or high-stakes enough for the lawyer’s input to make a difference. A lawyer may be able to do things on your behalf to elevate your chances of winning a case: the lawyer can get a judge to allow more discovery, can make a motion if the other party inappropriately denies your request for discovery, and can raise issues with the law as they apply to your situation that the average person may never consider. For example, if a towing company is trying to charge you a huge fee, it may be more effective to argue that their fees are unreasonable and arbitrary than to challenge the necessity of specific fees point-by-point.
When hiring a lawyer, look for someone who has experience litigating cases against the industry standard that the towing company you’re dealing with operates under. Some towing companies are more likely to be sued than others, whether due to permitting problems, lack of proper licensing, or plain old bad practice. Any lawyer who promises you an outcome if you take them on as your attorney is an unethical lawyer. However, a lawyer with experience in tow truck cases against that particular company will be able to more accurately tell you what could happen and what laws apply.
Understanding Possible Outcomes
Depending on the unique circumstances of your case, there are a variety of possible outcomes when you sue a towing company, with three of the most common being financial compensation, your case being dismissed without a trial, or a settlement offer either before or after a lawsuit is filed.
Financial compensation is the most desirable outcome and is most likely to occur when the towing company is clearly at fault. It generally comes in the form of a settlement, or an amount that is decided by a judge.
Dismissal without trial happens when the court determines that you do not have a case against the towing company. This can happen if the towing company files a motion to dismiss and the judge grants it. Dismissal can also occur if you don’t provide enough evidence or don’t file all of the required paperwork; in this case , the judge may tell you how to file the necessary documents or allow you extra time to gather the necessary evidence before dismissing your case.
Offer of settlement can potentially occur before or after a lawsuit is filed (and in some cases, even after a case has begun). In most cases, however, settlement offers occur after you have filed a lawsuit, with the towing company offering an amount that is lower than your lawyer recommends. If you accept the offer, the case resolves without going to trial.
Factors that can influence these outcomes include:
Plaintiffs should always expect that the vast majority of cases settle without going to trial, unless the situation clearly calls for financial compensation in an amount that the other party is unwilling to pay.
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