Orange County residents who own vehicles or contract towing services should expect closer attention on how tow operators handle cars registered to active-duty military members after federal prosecutors announced a settlement with a local firm.
What changed and who is involved
The U.S. Department of Justice said S&K Towing Inc., a San Clemente company that towed many vehicles from Marine Corps Base Camp Pendleton, agreed to pay $160,000 to resolve allegations it violated the Service members Civil Relief Act (SCRA). The department's civil suit, filed March 25 in the U.S. District Court for the Central District of California, claimed S&K sold or otherwise disposed of as many as 148 vehicles owned by servicemembers without obtaining required court orders.
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division and First Assistant U.S. Attorney Bill Essayli commented on the case in DOJ statements. The litigation was handled in the Central District by Assistant U.S. Attorney Katherine M. Hikida of the Civil Division, with support from the Justice Department’s Housing and Civil Enforcement Section.
Local consequences and legal requirements
The SCRA protects active-duty servicemembers from certain civil actions while they serve. According to the Justice Department, the law requires tow companies to obtain a court order before selling or otherwise disposing of vehicles owned by those protected under the statute. The lawsuit alleges S&K failed to follow those rules despite contractual obligations with Camp Pendleton to comply with federal and state law.
"For far too long, tow companies have sold or disposed of servicemembers' vehicles in violation of federal law," Assistant Attorney General Harmeet K. Dhillon said.
The department says problems continued even after a Military Legal Assistance attorney contacted S&K in May 2024 to explain the company's alleged violations. In that exchange, a manager at S&K reportedly told the attorney, "We do this all the time," and the company continued auctioning or disposing of vehicles, in some cases after being told the owner was in the military.
What this means for residents and service members
For Orange County residents — particularly those with family or household members serving in the armed forces — the settlement highlights a federal enforcement pathway and potential compensation if rights under the SCRA are violated. It also signals that municipalities, military installations and private property owners may press for stricter compliance from contractors.
- Payment: S&K Towing agreed to pay $160,000 as part of the settlement.
- Alleged scope: Up to 148 vehicles sold or disposed of without court orders.
- Locations involved: Many vehicles were towed from Marine Corps Base Camp Pendleton; S&K is based in San Clemente.
| Item | Figure |
|---|---|
| Alleged vehicles affected | 148 |
| Settlement amount | $160,000 |
| Filed | March 25 (U.S. District Court, Central District of CA) |
Local officials and towing contractors did not publish immediate responses to the settlement in the department’s announcement. The case itself, and the department’s public statement, serve as a reminder that federal civil protections for service members carry enforcement mechanisms and potential financial remedies.
Servicemembers or family members who believe their rights under the SCRA have been violated can consult Military Legal Assistance offices on base or contact the Department of Justice for guidance on potential remedies.
