SAN DIEGO (CNS) — A towing company has agreed to pay $160,000 to settle a U.S. Department of Justice lawsuit that alleged the company illegally sold or disposed of servicemembers' vehicles, many of which were towed from Camp Pendleton.
S & K Towing Inc., based out of San Clemente, allegedly towed as many as 148 vehicles owned by servicemembers in violation of the Servicemembers Civil Relief Act, which provides certain protections to active-duty servicemembers.
Court orders should have been obtained before selling or disposing of the vehicles, according to the Department of Justice, which alleges the company auctioned some vehicles after they were told the owner was in the military. A Military Legal Assistance attorney also told company officials they were violating the Servicemembers Civil Relief Act, but was told by an S & K manager, "We do this all the time," according to the DOJ.
According to the settlement agreement, S & K Towing neither admits nor denies the government's allegations, but is providing $160,000 to compensate affected servicemembers.
The company is also in the process of shutting down its operations, but agreed to fully comply with the Servicemembers Civil Relief Act if it restarts a towing or vehicle storage business.
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