The Justice Department filed a lawsuit on Mar. 25 against San Clemente-based S&K Towing Inc., alleging the company violated the Servicemembers Civil Relief Act (SCRA) by selling or disposing of nearly 150 vehicles owned by military members without proper legal procedures.
The case centers on protections granted to servicemembers whose property may be vulnerable during deployments and training, underscoring federal efforts to safeguard their rights at home.
According to the lawsuit, between August 2020 and April 2025, S&K Towing sold or disposed of as many as 148 vehicles belonging to servicemembers, many of which were towed from Marine Corps Base Camp Pendleton. The Justice Department said that although S&K’s contract with Camp Pendleton required compliance with all applicable laws, the company failed to obtain court orders before selling these vehicles as mandated by the SCRA.
First Assistant United States Attorney Bill Essayli said, “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. It is unacceptable and illegal for a business to sell or dispose of these vehicles without abiding by the laws that protect servicemembers.”
Assistant Attorney General Harmeet K. Dhillon added, “Towing companies must respect and abide by the federal laws that protect members of our Armed Forces. 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.”
In May 2024, after being informed by a Military Legal Assistance lawyer about violations of the law, an S&K manager responded: “We do this all the time.” Despite this notification, S&K continued its practices without obtaining court orders even when told owners were in active service.
This case is being handled jointly by the Civil Rights Division’s Housing and Civil Enforcement Section along with staff from E. Martin Estrada's office; Estrada has held the position of United States Attorney for the Central District of California according to the official website. The U.S. Attorney's Office serves more than 19 million residents across seven counties according to its official website, focuses on prosecuting federal criminal cases and handling civil matters according to its official website, supports community outreach through victim assistance programs according to its official website, covers seven counties according to its official website, and works with law enforcement partners at various levels according to its official website.
Since 2011, more than $484 million has been obtained for over 149,000 servicemembers through enforcement actions related to SCRA violations. Individuals who believe their rights under this act have been violated are encouraged by officials involved in this case to contact local Armed Forces Legal Assistance Program Offices.
