DOJ Sues California Towing Company for Violating Servicemembers' Rights

DOJ Civil Rights Press Releases

Filed March 25th, 2026

Detected March 25th, 2026

Summary

The Department of Justice has filed a lawsuit against S & K Towing, Inc. in California for allegedly violating the Servicemembers Civil Relief Act (SCRA) by illegally auctioning vehicles owned by military members. The company is accused of disposing of up to 148 vehicles between August 2020 and April 2025 without obtaining required court orders.

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What changed

The Department of Justice, through its Civil Rights Division and the U.S. Attorney's Office for the Central District of California, has filed a lawsuit against S & K Towing, Inc. The lawsuit alleges that S & K Towing violated the Servicemembers Civil Relief Act (SCRA) by illegally auctioning or disposing of up to 148 vehicles owned by servicemembers between August 28, 2020, and April 15, 2025. Many of these vehicles were towed from Marine Corps Base Camp Pendleton, and the company allegedly failed to obtain the necessary court orders before selling vehicles belonging to SCRA-protected servicemembers, despite contractual obligations to comply with federal law.

This enforcement action highlights the critical need for businesses, particularly those contracting with military bases, to strictly adhere to SCRA provisions. Compliance officers should ensure their organizations have robust procedures in place to verify military status and obtain court orders before disposing of vehicles potentially owned by servicemembers. Failure to comply can result in significant legal action, as demonstrated by this lawsuit. Servicemembers who believe their rights have been violated are advised to contact their nearest Armed Forces Legal Assistance Program Office.

What to do next

Review towing and vehicle disposal policies to ensure compliance with SCRA requirements, including obtaining court orders before selling servicemembers' vehicles.
Implement training for staff involved in vehicle impoundment and disposal regarding SCRA protections.
Establish a process for verifying military status and adhering to SCRA notice and legal requirements.

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Press Release

DOJ Sues California Towing Company for Illegally Auctioning Servicemembers’ Vehicles

Wednesday, March 25, 2026

Share For Immediate Release Office of Public Affairs The Justice Department today filed a lawsuit against S & K Towing, Inc., which is based in San Clemente, California, alleging that the company violated the Servicemembers Civil Relief Act (SCRA) by illegally auctioning motor vehicles owned by members of the military.

The Department’s lawsuit alleges that, from August 28, 2020, through April 15, 2025, S & K illegally sold or disposed of as many as 148 vehicles owned by servicemembers, many of which were towed from Marine Corps Base Camp Pendleton. Even though S & K’s contract with Camp Pendleton required it to comply with all applicable federal and state laws, the company made no effort to comply with the SCRA, which requires tow companies to obtain a court order before selling or disposing of a vehicle owned by an SCRA-protected servicemember.

“Towing companies must respect and abide by the federal laws that protect members of our Armed Forces,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Servicemembers are often absent for extended periods due to training and deployments and may not know that their vehicle has been towed. The SCRA plays an important role in providing these servicemembers with adequate legal protections, including notice and the opportunity to have towing and storage fees adjusted in light of their military service.”

“Servicemembers deserve peace of mind in knowing that their legal rights will be protected at home while they are away serving the United States,” said First Assistant United States Attorney Bilal A. Essayli for the Central District of California. “It is unacceptable for a business to sell or dispose of servicemembers’ vehicles without abiding by the laws that protect servicemembers.”

In May 2024, a Military Legal Assistance attorney contacted S & K Towing and explained that the company was violating the SCRA. In response, a manager at S & K Towing told the attorney that “We do this all the time.” After this exchange, S & K Towing continued to sell and dispose of vehicles owned by SCRA-protected servicemembers without obtaining court orders. Some of the vehicles S & K sold or disposed of were registered to addresses on Camp Pendleton. In other cases, S & K auctioned vehicles even after they were told that the owner was in the military.

This case is being handled by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Central District of California. Since 2011, the Department has obtained over $484 million in monetary relief for over 149,000 servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at legalassistance.law.af.mil.

Updated March 25, 2026 Component Civil Rights Division Press Release Number: 26-286