US Supreme Court to decide on preemption of claims against towing co.

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The U.S. Supreme Court will decide whether federal law deregulating the trucking industry preempts state consumer protection and tort claims alleging the wrongful disposal of a towed vehicle.

The court will review a New Hampshire Supreme Court decision that a car owner’s state-law claims were not preempted by federal law.

The plaintiff lived in an apartment. The defendant is a towing company used by the plaintiff’s landlord to enforce the apartment’s parking policy. The defendant towed the plaintiff’s vehicle pursuant to a parking policy requiring tenants to move their cars during snowstorms. Before the plaintiff could recover his car, the defendant traded the vehicle to a third party. The plaintiff received no compensation for his loss.

The plaintiff sued, alleging that the defendant violated the state’s consumer protection statute, a state law governing the procedures for the disposition of towed vehicles, and the common law duty of a bailee to exercise reasonable care while in possession of a bailor’s property.

The defendant argued that the plaintiff’s statutory and tort claims were preempted by the Federal Aviation Administration Authorization Act, which includes provisions deregulating the trucking industry.

The plaintiff contended there was no preemption because his claims did not relate to the transportation rates, routes and services of a motor carrier.

The state supreme court agreed that the plaintiff could proceed with his lawsuit.

“[W]e can discern no reason why preempting state-based claims against towing companies arising out of their efforts to dispose of unclaimed vehicles promotes the deregulatory objective of [the Act’s preemption clause], nor a ‘clear and manifest purpose’ in the [Act] to displace private remedies against tow truck companies for conduct wholly unrelated to the transportation of property,” the court said.

The Supreme Court is expected to decide the case this term.

Dan’s City Used Cars v. Pelkey, No. 12-52. Certiorari granted: Dec. 7.