Liability/Due Process: 3rd Party (non-owner) Vehicle Impound

[ansan12001]

State of California (Los Angeles County)

First off, many thanks for all the great advice people have given on this site! My question is both complicated and somewhat confusing, so I will try to be clear. This is a good challenge for the experts.

About four months ago, I helped my sister ("Steff") sell her car, a 1996 Honda Civic. She sold the car to a family friend ("Kevin"). Kevin at the time was down on his luck due to very bad health. We were trying to help him out, so we gave the car to him on good faith, i.e. no actual upfront payment. Kevin was to pay us within a couple of weeks. He was given the signed title to transfer the car into his name. I had Steff fill out DMV forms for bill of sale (yes, without the actual payment) and waiver of liability. Steff failed to turn in DMV paperwork, she forgot.

A week after the vehicle transfer, the car was impounded in L.A. county because Kevin had a seizure on the freeway. A police report was written, I have not seen it. Anyways, the tow company notified Steff of the impound TWO WEEKS after the fact. The company got the address from the DMV (Dept. of Motor Vehicle's). When Steff received the notice, she called the tow company and said she was no longer the owner. However, the tow company claimed she was responsible because the DMV still had her as the registered owner. Steff called the DMV and got the same information.

Two weeks into the impound, the tow company wanted over a thousand dollars to release the vehicle. My sister and I were surprised by how long the tow company took to send us notice. Due to lack of proof of ownership and a medical hold on his driver's license, Kevin could not get the car out of impound.

We ourselves did not have the money to get the car out; a few weeks later (about a month after initial impound) the car was sold at auction and we were sent a bill from the tow company in the amount of 1300.00, the remaining balance of the total impound fees. We did not pay, and about two weeks later (about 6 weeks after initial impound) we received a bill for 1300.00 from a collection agency. I am guessing that ethier the debt was sold by the tow company or the collection agency is on commission. On the hook for 1300.00 and out of a car, I started searching California law for help. In my research, I discovered section 14602.6.


(2) The impounding agency, within two working days of impoundment, shall send a notice by certified mail, return receipt requested, to the legal owner of the vehicle, at the address obtained from the department, informing the owner that the vehicle as been impounded. Failure to notify the legal owner within two working days shall prohibit the impounding agency from charging for more than 15 days’ impoundment when the legal owner redeems the impounded vehicle. The impounding agency shall maintain a published telephone number that provides information 24 hours a day regarding the impoundment of vehicles and the rights of a registered owner to request a hearing.

The tow company claims to have sent us notice by mail within the time allowed by law, we never received anything. Obviously, if notice was sent by certified mail, then there would not be any issues regarding that. Had we knew of the impound within the four days (2 weekend, 2 working), we would have been able to get the car out of impound.

My idea is to take the tow company to small claims on the basis that we lost the car due to their mistake in not following impound procedure. I will ask for 2500.00, the value of the car (Kelly Blue Book) and the 1300.00 that is in collections, since it appears we will still have to pay the collection agency for the tow company's error. There seems to be only two possible outcomes: 1. the court acknowledges our ownership of the car (giving us a legal basis for our claim) or 2. the court rejects our ownership of the car, which would mean Steff can't be held reponsible for the outstanding impound fees.

Wow, that was long.....what do you think?

And by the way, Kevin has since decided not to pay Steff for the car or take reponsiblity for the impound; needless to say, he is no longer a family friend.

What is the name of your state (only U.S. law)? California

 

[racer72]

You can do nothing, the car was not yours. Your sister at this time has no claim for a lawsuit against the towing company, she has suffered no monetary losses due to them at this time. Owing money in not considered a monetary loss. But your sister did suffer a monetary loss and it was caused by the buyer of the vehicle. At this time it would be for the value of the vehicle itself. She might, but it would be a stretch at this point, to sue the buyer for the cost of the impound. If she pays the $1300, then she definitely could. The statute you quoted does not apply, it addresses vehicles towed when the operator is driving without a valid driver's license. The tow would be of a civil nature. Kevin should have notified your sister of the tow and and the likelyhood she could be held liable due to his failure to transfer ownership into his name. Please stop with the we stuff, you have no dog in this fight.

 

[ansan12001]

hum, thanks. When I say we, i mean my sister and I. Obviously, I have no claim to the car, I am just helping my sister out**************.

Does it not seem there is a double standard? How can my sister still be legally responsible for the car (according to DMV) but not have a right to be properly notified by the tow company, thus giving her a chance to get the car out in a timely manner? Would not the court also recognize Steff as the legal owner? Before the impound, the ownership paperwork for the car was not done properly and Steff never received payment from Kevin, In fact, the tow company assumes that Steff has always been the owner, they have no knowledge of the situiation between Kevin and Steff.
Perhaps the section code I quoted was in error?

 

[ansan12001]

Is there not a due process law in California for when a car is impounded without the owner's (in this case, Steff) knowledge?

Does this section of California Law apply:

Notice to Owner: Poststorage Hearing

22852. (a) Whenever an authorized member of a public agency directs the storage of a vehicle as permitted under this section, or upon the storage of any vehicle as permitted herein (except as provided in subdivision (f) or (g)), the agency or person directing the storage shall provide the vehicle's registered and legal owners of record, or their agents, with the opportunity for a poststorage hearing to determine the validity of the storage.

 

[racer72]

Does it not seem there is a double standard? How can my sister still be legally responsible for the car (according to DMV) but not have a right to be properly notified by the tow company, thus giving her a chance to get the car out in a timely manner?

Nope. The initial responsibility for notification of the tow was the person driving the car at the time it was towed. In this type of situtation, the tow was not considered an impoundment due to a violation of the law, it was a private tow requested by the police. She was given a chance to get the vehicle back in a timely manner. Remember from your first post?

Anyways, the tow company notified Steff of the impound TWO WEEKS after the fact.

It is not the towing company's fault your sister could not afford the impound. It also appears she could not afford the responsibility selling a vehicle in a manner that could have protected her. Also, if she had been notified of the tow by the responsible party, she could have migated her damages.

Would not the court also recognize Steff as the legal owner?

Yes and it appears there were 2 failures in the process, this means your sister is legally liable for the vehicle and the monies owed. There was no transfer of title and no report of sale made to the state.

Before the impound, the ownership paperwork for the car was not done properly and Steff never received payment from Kevin, In fact, the tow company assumes that Steff has always been the owner, they have no knowledge of the situiation between Kevin and Steff.

Now you get the idea.

Perhaps the section code I quoted was in error?

As stated, it does not apply.

Is there not a due process law in California for when a car is impounded without the owner's (in this case, Steff) knowledge?

In most cases, due process applies to criminal acts and one's rights when facing charges. Everything with this tow was a civil action, there is no cause for due process.

Does this section of California Law apply:

Notice to Owner: Poststorage Hearing

22852. (a) Whenever an authorized member of a public agency directs the storage of a vehicle as permitted under this section, or upon the storage of any vehicle as permitted herein (except as provided in subdivision (f) or (g)), the agency or person directing the storage shall provide the vehicle's registered and legal owners of record, or their agents, with the opportunity for a poststorage hearing to determine the validity of the storage.

Probably not. The tow, even if requested by an authorized member of a public agency, was not caused due to a violation of the law. As stated above, the towing company considered the tow a private tow. Much like when a vehicle is towed from an auto accident. The owner of the vehicle is liable the moment the tow truck picks up the vehicle.

As I stated in my previous post, there is only there are 2 negligent parties and they must be held accountable for the costs associated with the tow and storage fees. One is your sister for not filing a report of sale within the 7 days as prescribed by law. The other is Kevin for not transferring ownership of the vehicle then not notifying your sister of the tow in a timely manner.

 

[ansan12001]

thanks for the insight, I appreciate all your advice, sounds like your real knowledgeable in this area....

In my original post, I stated that there was a police report, which neither I nor Steff has had a chance to review. When Steff finally found out from the tow company that the car was impounded, she called Kevin. Kevin stated the car was impounded for "medical reasons." Steff does not actually know for a fact that the car was NOT impounded for a criminal offense (i.e. driving under the influence of prescription drugs), this is because she knew Kevin took heavy medication for his health. If there is a police report in existence for this matter, would that indicate that a criminal offense might have been committed? Are police reports a matter of public record? If the car was actually impounded for a criminal offense, does Steff have a valid case against the tow company?

 

[dva4reel]

As stated above, unforunately theres not a whole lot you can do about your situation based on the way you handled it. Your best bet would be to sue Kevin. However, you dont have any paperwork signed from Kevin promising to pay you for the car. Without at least a promissory note stating basis of the transaction, you dont have any defense. The certified notification doesn't apply to you because the vehicle was taken directly from the driver, which in that case you're given a actual impound notification at the time of impound. Usually a few weeks later, you'll receive another(actual registered owner) to make certain you are aware in the event someone else was driving the vehicle at the time of impoundment, as you did. Kevin could have never retrieved the vehicle because legally he was never the owner. the medical hold and all that sounds legit because that is how its handled in the event of a seizure. He has to be medically cleared by a physician and Drivers Safety dept to ever get on the road again legally. It was Kevin's responsibility to tell you when the vehicle was impounded so that you can retrieve the vehicle incurring the least amount of fees possible. You cant fight the tow company for negligence, you cant fight the DMV without submitted paperwork, and dear god, you cant fight Kevin because unfortunately you dont have the proof to do it. We live and learn lessons everyday! I'm DMV knowledgable heres some cheap advice that will go a long way in the future for covering yourself in these type of instances. If you decide to be nice, still get the basis of the contract in writing. Most important when selling a car, complete a release of liability. DO NOT DROP IN IN THE EXPRESS BOX! YOU STILL HAVE NO PROOF DMV GOT IT. You must stand in the start here line, have your form dateline stamped, leave and make a copy for yourself, then return and drop it in the box. has to be done that way for proof to be considered when something like this happens. Also 2 more piece of info that might help you the next time. You can pay a transfer fee to start the process and establish new ownership which is about $15-20 and a bill of sale. although the transfer process is not complete because of other fees and requirements, the new owner is established on record which in turn releases your liability or she could have paid that same $15-20 and established herself as the legal owner(meaning he still hasn't paid off the car, like a leinholder) and Kevin as the registered owner. As legal owner you're still notified of any info pertaining to the vehicle but your not the responsible party for anything that occurs. Sorry to hear no good deed goes unpunished. Hope this info will be helpful for you in the future.

 

[ansan12001]

Message to the last person who posted:

thanks, I appreciate the advice, an excellent response....seems like u understand the situiation, and unfortunately, I was punished for not protecting myself.

 

[auto??s]

Sounds Similar???

What is the name of your state (only U.S. law)? California.
I sold a car back in March of 2008 however I failed to file a release of liability. When I sold the car I was paid with a credit union check so me assuming that since there was now a lien holder(the Bank) on the car the proper registration process would have occurred but it didnt. So now in Oct of 2009 I recieve a letter from a collection agency stating I owe them $2200 because all fees werent recovered at the auction and I was the last registered owner. I dont understand if the bank issued a check they would have became the legal owner of the car, right?? I also have a handwritten Bill of sale signed and dated by both myself and the buyer.. Please tell me what to do as the agency said I was liable??? Thanks......