The Justice Department filed a lawsuit against an Orange County-based towing company alleging it violated the Servicemembers Civil Relief Act (SCRA) by illegally auctioning over several years nearly 150 motor vehicles owned by members of the military.
According to the lawsuit, from August 2020 to April 2025, San Clemente-based S&K Towing Inc. 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.
“The men and women who serve in our nation’s military 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 Bill Essayli. “It is unacceptable and illegal for a business to sell or dispose of these vehicles without abiding by the laws that protect servicemembers.”
In May 2024, a Military Legal Assistance lawyer 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.
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“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.”
DOJ Sues California Towing Company for Illegally Auctioning Servicemembers’ Vehicles
— DOJ Civil Rights Division (@CivilRights) March 25, 2026
“Towing companies must respect and abide by the federal laws that protect members of our Armed Forces,” said @AAGDhillon. “Servicemembers are often absent for extended periods due to training… pic.twitter.com/KtuyyervdO
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 more than $484 million in monetary relief for more than 149,000 servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Service members 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.
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