State Supreme Court hauls in big win for Connecticut tow companies

Connecticut caps what towing companies can charge for nonconsensual tows. But the state’s Supreme Court just gave towers more leeway to tack on “exceptional service” fees.

Like several states, Connecticut regulates rates for nonconsensual towing. The Department of Motor Vehicles sets the maximum hourly rate for heavy-duty trucks at $700, and for oversize or overweight tows at $1,500 per hour. Using a rotator truck costs $1,275 per hour. These rates are higher than those in many other states.

The rates apply to a standard nonconsensual tow. If a job gets more complicated, tow companies are allowed to tack on extra charges for “exceptional services.”

That statute was the center of a towing bill dispute that lasted more than a decade.

In 2014, a tractor-trailer crashed on Interstate 84 in Danbury. Police called Modzelewski’s Towing and Storage, which used special equipment to remove the truck wedged under a guardrail. They employed a rotator truck, an OSHA rigging supervisor and additional equipment.

After 28 days in storage, the nonconsensual towing bill exceeded $29,000.

The trucking company’s insurance company paid the bill under protest and filed a complaint with the DMV, claiming the charges were unfair and unreasonable.

The DMV agreed. In August 2020, a hearing officer found that Modzelewski’s set its rates based on special equipment, not the commissioner’s hourly rate.

It all came down to labor versus equipment. The hearing officer ruled that the regulation allows charges for labor using special equipment, but not for the equipment itself.

Of the original bill that was more than $29,000, the DMV found that less than $5,000 was allowed. More than a dozen charges were cut down to just four.

Modzelewski’s was ordered to pay nearly $25,000 in restitution and a $4,000 civil penalty. The towing company disputed the DMV’s determination in court.

While the DMV argued that only labor can be billed, Modzelewski’s contended that equipment costs should be included.

Both the trial court and appellate court agreed with the DMV. They found that “additional fees for exceptional services” do not include costs associated with special equipment used. The courts ruled in favor of labor-based fees only.

However, the Connecticut Supreme Court shot down all three decisions. Justice Andrew McDonald, with all seven justices concurring, balked at the appellate court’s claim that the regulation is clear and unambiguous. The court found that the statute is open to interpretation and that the towing company’s reading is more reasonable.

The Supreme Court argued that if towing companies cannot recover equipment costs, they might not provide exceptional services.

Companies on the police rotation list need specialized equipment. A 75-ton rotator can cost nearly $1 million.

The court rejected the idea of including those costs in the DMV’s rates. If the DMV set rates to cover such equipment, motorists who don’t need exceptional services would end up subsidizing those who do. It would also be a windfall for towing companies that choose not to have that equipment.

“In light of the fact that wrecker services are required to purchase costly and specialized equipment to enable them to perform exceptional services for purposes of being included on the state police’s rotation list, it would be well-nigh bizarre if wrecker services are precluded from recovering, pursuant to section 14-63-36c (c) of the regulations, sufficient funds to recoup the costs for procuring, insuring and maintaining that special equipment,” the Supreme Court ruled.

Modzelewski’s restitution and civil penalty were vacated. The dispute goes back to the hearing officer, who will have to reassess the nonconsensual tow bill in light of the new court interpretation. LL

State Legislative Editor Keith Goble contributed to this story.