El Paso City has announced that it has resolved the lawsuit involving the illegal selling of vehicles belonging to active service members. In 2023, the federal government filed a lawsuit against El Paso, United Road Towing Inc. (URT), and Rod Robertson Enterprises Inc. (RRE), which were contracted by El Paso City.
According to the lawsuit, the defendants violated the Servicemembers Civil Relief Act (SCRA) by illegally impounding and selling soldiers’ vehicles. El Paso City worked with the Department of Justice and claimed that both companies must follow federal laws and will be liable to the city’s legal fees.
The settlements have agreed on the following terms:
- URT will pay around $25,000 in civil fees and compensate approximately $58,000 in damages to 50 affected soldiers between May 20, 2019, and June 11, 2023.
- RRE will pay approximately $20,000 in civil fees and provide about $140,000 to 122 affected soldiers between January 1, 2015, and April 15, 2019.
In addition to these fees, URT has committed to checking if vehicles belong to active duty service members in the future.
The company will also share government policies and procedures for vehicle sales, highlighting SCRA protections concerning vehicle repossession. URT will also provide its employees with SCRA policy training to ensure they don’t violate the law in the future.
The lawsuit also caused the city to incur $130,000 in legal expenses and fees, which it is actively working to reimburse RRE for. Each vendor is said to have proportional responsibility for violating SCRA guidelines.
City Attorney Karla Nieman said, “El Paso is pleased to have reached an agreement with the DOJ,” and “this case demonstrates the city’s commitment to following federal laws that protect military personnel. Nieman noted that this resolution was vital to El Paso, given its close relationships with Fort Bliss. El Paso City will continue to ensure all contractual obligations are followed through.”
The SCRA stipulates that companies aren’t allowed to repossess the personal property of active duty service members, including vehicles. Violation of SCRA regulations can prompt expensive fees, which this case has demonstrated.
Companies should verify a person’s active duty military status to avoid costly cases like these. SCRACVS can provide evidence that a person is actively serving the United States Armed Forces to help them comply with the law. Click here to sign up at SCRAVS and verify the active duty status.