A law firm that in recent years has focused heavily on class actions against the city of Chicago over its parking, towing and vehicle ticketing policies is back in court with another lawsuit, asserting the city has illegally seized vehicles over unpaid parking tickets or other alleged non-moving violations.
Attorneys from the firm of Myron M. Cherry & Associates filed suit in Chicago federal court on Feb. 27 on behalf of named plaintiffs Ryan O'Donnell and Michael Goree, against the City of Chicago and United Road Towing. The lawsuit accuses the city of Chicago over the alleged booting, impounding, seizure, salvage and sale of vehicles, from owners who allegedly are on record for unpaid fines, parking tickets and other non-moving violations.
But the suit contends that vehicles impounded, salvaged or sold, are not necessarily the vehicles involved in the violation.
Jacie C. Zolna
| cherry-law.com
According to court documents, the city's tows "do not even target the vehicle that was used in a particular infraction. Instead, any and all vehicles owned by a person with unpaid tickets ... are eligible to be towed and sold," under the city's policy.
Plaintiffs claim these actions are unconstitutional.
"Taking a person’s car simply because they owe civil debt bears no 'reasonable relationship to a legitimate purpose within the City’s police powers – e.g., the promotion of the health, safety, well-being or welfare of the community,'" the lawsuit claims.
Plaintiffs contend that such seizing or "taking" of an individual's personal property without due process or compensation, violates the Fifth Amendment of the U.S. Constitution. According to published reports, Chicago has seized and sold nearly 50,000 vehicles since 2011 for ticket related infractions, none of which were the proceeds applied to the debt owed or to pay the vehicle's owners.
According to the complaint, named co-defendant United Road Towing, who has been the city's exclusive contractual towing company for 30 years, allegedly also receives a portion of the proceeds from sale or salvage.
United Towing has been the subject of scandal on multiple occasions, including an FBI investigation into possible auto-theft. Despite this, Chicago chose to award United a $60 million contract over five years in 2016 to facilitate towing and impound, the complaint asserts.
Additionally, the city allegedly "pays" United Towing in cars, allegedly selling confiscated vehicles to the company at scrap rate, far below the actual value of the vehicles seized. United Road Towing further benefits from this arrangement through various subsidiaries, and as one of the largest auto auction operators in the state of Illinois, the complaint said.
Such practices have been a long-standing bone of contention for the city, as it has faced numerous lawsuits from people who have allegedly been victims of the city's fee and impound structure. The Myron Cherry firm has filed several such lawsuits dating back to 2019.
In the latest case, plaintiffs O'Donnell and Goree both said their vehicles were impounded by the city, leading to charges for ticketing, towing, impoundment and storage that went unpaid for about two months each. Both vehicles were then allegedly seized and scrapped for salvage money less than three months later.
Goree’s Chevrolet vehicle was supposedly not towed, impounded, or disposed of as a result of ticket debt associated with it. The co-signor on Goree’s vehicle had outstanding ticket debt from a different vehicle, according to the lawsuit. Goree's vehicle was released to the lien holder, which ultimately sold the vehicle as well without applying any of the proceeds towards settlement of the unpaid debt, according to the complaint.
Plaintiffs are seeking a trial by jury, and actual and punitive damages, plus court costs and legal fees.
O'Donnell and Goree are represented by attorneys Jacie C. Zolna, Myron M. Cherry, Benjamin R. Swetland and Jessica C. Chavez, of Myron M. Cherry & Associates, of Chicago.