Six of the seven private companies that tow for the Detroit Police Department filed a federal lawsuit on December 13, 2023 alleging the city breached contracts by requiring tows to city-owned impound yards instead of the companies' lots, ran facilities that were not ADA compliant and lacked restrooms, and failed to pay for years of towing services, according to the Detroit News. The lawsuit came after Operation Northern Hook, a federal investigation that resulted in convictions of multiple elected officials and police officers for towing-related corruption.
Operator takeaway
Six companies sued because the city stopped paying and routed their contractual work to city-run lots — if your municipality is changing the terms of your towing contract without amending it, document every deviation and consult an attorney before the losses compound.