The Sun
Sunnyvale's Newspaper

Sunnyvale settles towing class action suit

Forty people may receive payouts

By Justin Berton

Sunnyvale city officials settled a class action lawsuit this week after the city admitted it was unaware of changes in a law that led the city to hold onto towed cars longer than was legal.

Councilmembers approved the settlement, which is expected to cost the city up to $67,000 in costs and attorney fees, at their Aug. 18 meeting.

In at least 40 instances, the city illegally held a vehicle more than 30 days in an impoundment garage after the car had been towed.

After reviewing towing procedures and practices, the city admitted notification letters sent out by the Sunnyvale Department of Public Safety were not in compliance with a vehicle code that took effect in January 1996.

According to a city report issued by City Attorney Valerie Armento, the city was unaware they needed to rewrite the language in notification mailers to car owners.

Sunnyvale Fire Marshal Byron Pipkin, who oversees the city's towing procedures for the public safety department, said the city's prior language did not make it clear to those receiving notices that their cars could be reclaimed before 30 days.

"Inevitably," Pipkin said, "we kept cars longer than was allowed."

This week the city and lawyers for the Public Interest Law Group will go before Superior Court Judge William Martin to sign off on the settlement agreement.

Amanda Wilson, directing attorney for the class action suit, said up to 100 mailers would be sent to potential plaintiffs in the lawsuit, and advertisements will be placed in newspapers.

"This settlement will take care of problems for people in the future and give adequate compensation for those who have been harmed in the past," Wilson said.

City officials estimate the number of plaintiffs, which began at 82, will be trimmed to 40 once all requirements are met.

Over the course of the 15 months that the city was not in compliance with the law, it towed 769 cars and sent the nebulous notifications. Of those, 40 cars were not retrieved by their owners after the 30-day period.

The maximum each person can claim is $25 a day for storage charges, with a cap at $575.

Since the lawsuit, Pipkin said, the department has rewritten the mailers in accordance with the vehicle code and has notified all employees of the new procedures.

The settlement ends a lawsuit that began in March after two residents claimed Sunnyvale Towing illegally held their car and sold it for profit. In May 1997, Richard Pell was pulled over on Lawrence Expressway for a moving violation and ended up walking home after police impounded his car for failure to provide proof of insurance.

Sunnyvale Towing impounded the car for more than 30 days and sold it to cover costs after it was not claimed. When Stephen Prater, who did have insurance for the car, tried to reclaim the vehicle, the city told him it was too late. The two launched the class action lawsuit. They later learned other car owners were sent notifications with out-of-date language.

Wilson applauded the city's move to settle the matter and change procedures.

"We really commend the city for making a strong response to ensure members of the public in Sunnyvale are now treated fairly by procedures," Wilson said. "The people will now get very good information on what they need to do to get thier cars back."

Wilson said Sunnyvale is not the only city that has had problems with the new vehicle code. Wilson said her law group is planning class action suits against four other cities in the Bay Area.

"Hopefully, other cities will take it upon themselves to review their procedures," Wilson said.

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This article appeared in the Sunnyvale Sun, August 26, 1998.
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