A San Clemente towing company has agreed to pay $160,000 to settle a federal lawsuit alleging the business sold or disposed of as many as 148 vehicles belonging to active duty military members without the required court orders, federal officials announced Tuesday, July 14.
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S&K Towing Inc. agreed to pay the money to impacted service members whose vehicles were auctioned off between August 2020 and April 2025 as the company closes its operations, according to the U.S. Department of Justice.
The towing company sold and disposed of the vehicles while it had a contract with Camp Pendleton requiring S&K Towing to follow all state and federal laws, including the Servicemembers Civil Relief Act, the lawsuit alleged. The law is meant to protect servicemembers’ property by requiring tow companies to receive a court order before selling or disposing of vehicles protected by the act. Many of the vehicles S&K Towing is accused of selling or disposing of were towed from Camp Pendleton.
DOJ officials filed the lawsuit in March, after a Military Legal Assistance attorney had warned S&K Towing Inc. almost two years prior that the towing company was violating the Servicemembers Civil Relief Act, federal officials said.
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A manager with S&K Towing allegedly told a DOJ lawyer that the company “do(es) this all the time,” and the towing company continued to sell or dispose of service members’ vehicles after the lawyer reached out, the lawsuit alleged.
While S&K Towing is shutting down, the company also agreed to have policies and procedures that follow the Servicemembers Civil Relief Act if it ever re-enters the business of selling and storing vehicles.
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S&K Towing didn’t immediately respond to a request for comment.