The Springfield Towing Company argued it was owed $2.9 million by the city, rejected by the arbitrator
05.03.2008 | SPRINGFIELD – A Springfield Towing Alliance truck works on an overturned school bus as part of a class on towing and recovering techniques.SPRINGFIELD – An arbitrator has ruled that the Springfield Towing Alliance, terminated by the city in 2008 and mired in a legal battle since that time, must pay the city $62,405 in outstanding fees.
City Solicitor Edward M. Pikula said the ruling from Arbitrator Mel L. Greenberg is binding on both sides, as well as a bank also owed money in the arbitration case.
The towing alliance under the corporate name CF Inc., consisting of multiple towing contractors, was initially hired by the city in 2006 for police-ordered towing and storage duties. In November of 2008, the city terminated the alliance after accusing the company of 17 significant contract violations including tardy and incomplete reports and failure to pay the city approximately $142,000 in fees.
Robert L. JonesThe company, through its principal owner, Robert L. Jones, denied wrongdoing and said it was wrongly terminated.
The alliance in 2008 claimed it was owed nearly $2.9 million by the city for unpaid towing and storage charges for vehicles still in the garage at the time of its termination, and for court-ordered cars held as evidence, Greenberg stated within his ruling.
The sides, after filing lawsuits, agreed to arbitration, Pikula said. The arbitrator's ruling was marked “case closed.”
“The city sued seeking $142,000 and the STA countersued for $2.9 million, so the net award of $62,000 for us and zero for them is a win, and we will move forward to collect,” Pikula said.
The “real victory,” however, is that the Police Department’s towing needs are being better served as now overseen by the Springfield Parking Authority and its towing vendor, CJ’s Towing Unlimited of Springfield, Pikula said.
Raipher D. Pellegrino, a lawyer who represented the alliance, said last week he would confer with his client before commenting.
Greenberg, in a 14-page ruling, concluded that the city was owed $110,192, and the alliance was owed $47,787, leaving an outstanding balance owed to the city of $62,405.
In addition, the alliance has a legal “garage keeper’s lien” on all cars still kept on the city’s towing lot from 2008, and will get “all the net proceeds of any disposition or sale or redemption payment by the owners,” Greenberg ruled.
Greenberg also ruled that United Bank is owed $81,694 from CF Inc. and/or Jones.
Greenberg criticized both the city and the alliance in his ruling, saying the “sad story” of their “dysfunctional” relationship was shown in a 2010 report by the state Office of the Inspector General.
“By the end of February 2008, communications between Jones, the Police Department and city officials had completely broken down, which compounded the confusion and suspicions on both sides,” Greenberg said.
As aptly shown in the Inspector General’s report, issues were not resolved and “the ‘dysfunctional’ relationship between the parties gave rise to exaggerated claims on both sides,” Greenberg said.
CJ’s Towing has a five-year contract for towing in Springfield, signed in March of 2010.
Arbitration Decision: City of Springfield v. C F Inc. DBA Springfield Towing Alliance, et al