We recently achieved a decision that Pennsylvania’s towing law’s provision for “unqualified compensation” did not obligate a carrier to pay whatever the tower charged. This was the first published opinion interpreting this provision.
The action arose from a towing company’s billing for righting and towing a tractor trailer. The tower refused to release the unit until its bill was paid. The carrier offered a payment of less than the bill which was rejected by the towing company.
The carrier then sued the towing company for the release of its unit and claiming the charges were excessive.
The towing company asked the Court to find that it was entitled to full payment of its bill based upon the Pennsylvania law. That law provides that an entity authorized by the State Police to tow a vehicle “shall have the unqualified right to compensation for the cost of removal and cargo storage and clean up from the owner…” Pa. Motor Vehicle Code Section 3757.
The towing company argued that, based upon this provision, it was entitled to be paid the amount of its bill without any right of the carrier to question or challenge it. It asserted that whatever was billed was required to be paid according to that law.
We responded that the law entitles a tower to payment. However, the payment is subject to the requirement of reasonableness, necessity, and relation consistent with all other damage recoveries in Pennsylvania.
We argued that under the tower’s interpretation requiring automatic payment, a towing company is in a superior position to a permanently incapacitated person who must prove that their medical bills are reasonable, necessary, and related to the accident.
We also argued that denying a carrier’s right to challenge the reasonableness, necessity, and relationship of the tower’s bill violated the carrier’s Constitutional rights.
The Court rendered a thorough and well-reasoned opinion, rejecting the towing company’s interpretation. It held that “the vehicle owner is entitled to its day in court.”
It further ordered the towing company to respond to our discovery as to the basis for the bill.