Santander Consumer U.S., Inc. v. City of Yonkers

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SANTANDER CONSUMER USA, INC., Plaintiff, v. THE CITY OF YONKERS, A.P.O.W. TOWING, LLC, and YONKERS TOWING & RECOVERY LLC, Defendants.

No. 22-CV-8870 (KMK)

United States District Court, S.D. New York

November 18, 2024

Appearances:

Alexander Ryan Sokolof, Esq.

Nicholas Andrew Duston, Esq.

Norris McLaughlin, PA

New York, NY

Counsel for Plaintiff

Darius Patrick Chafizadeh, Esq.

Jared Andrew Kasschau, Esq.

Jessica Molinares Kalpakis, Esq.

White Plains, NY

Counsel for Defendant City of Yonkers

Dennis E.A. Lynch, Esq.

Blanchard & Wilson, LLP

White Plains, NY

Counsel for Defendant City of Yonkers

Paul William Meyer, Esq.

Law Office of Paul W. Meyer, Jr.

Yonkers, NY

Counsel for Defendants A.P.O.W. Towing, LLC, and Yonkers Towing & Recovery LLC

OPINION & ORDER

KENNETH M. KARAS, UNITED STATES DISTRICT JUDGE.

Santander Consumer USA, Inc. (“Plaintiff”) brings this Action under 42 U.S.C. § 1983 (“Section 1983”) against Defendants The City of Yonkers (“Yonkers”), and A.P.O.W. Towing, LLC, and Yonkers Towing & Recovery LLC (together, “YTR”), alleging constitutional and state law violations in connection with the seizure of Plaintiff's car. (See generally Am. Compl. (Dkt. No. 59).) Before the Court are: (1) Santander's Motion for Partial Summary Judgment, (2) Yonkers' Cross Motion for Summary Judgment, and (3) YTR's Cross Motion for Summary Judgment. For the reasons discussed below, Santander's Motion is granted in part and denied in part, Yonkers' Motion is granted in part and denied in part, and YTR's Motion is granted in part and denied in part.

I. Background

A. Factual Background

The following facts are taken from Plaintiff's 56.1 Statement (“Pl's 56.1”) (Dkt. No. 82), YTR's Counter 56.1 Statement (“YTR's Counter 56.1”) (Dkt. No. 90), Yonkers' 56.1 Statement (“Yonkers' 56.1”) (Dkt. No. 98), Yonkers' Counter 56.1 Statement (“Yonkers' Counter 56.1”) (Dkt. No. 99)^[1], Plaintiff's Counter to Yonkers' 56.1 Statement (“Pl's Counter 56.1”) (Dkt. No. 102-2), and the admissible evidence submitted by the Parties.^[2]

1. Defendants' Policies, Customs, and Practice

Yonkers' policies and procedures regarding the handling of impounded vehicles seized pursuant to the driver's arrest are derived in the first instance from Yonkers Police Department (“Yonkers P.D.”) Policy 180-4. (See Decl. of Darius P. Chafizadeh in Supp. of Yonkers' Mot. (“Chafizadeh Decl.”), Ex. 2 (“Vehicle Impound Policy”) (Dkt. No. 97-2) 3.) Police officers decide whether to impound a vehicle in situations where the vehicle is inoperable, the vehicle is needed for evidence in connection with an investigation, or when the vehicle operator is “removed from a vehicle in connection with an arrest . . . and no other person present can legally assume control of the vehicle.” (Id. 3-4.) Yonkers P.D. keeps a tow list from which towing companies are summoned to impound vehicles. (See id. 3.) To join the list, towing companies enter into an “Emergency Towing & Impound Services” contract with Yonkers. (See Decl. of Nicholas A. Duston (“Duston Decl.”), Ex. 4 (“Towing Contract”) (Dkt. No. 80-6) 8.) Towing companies pay Yonkers annually to be included on the tow list. (Id. 14; see also Yonkers' Counter 56.1 ¶ 33.) Towing companies are to respond within 20 minutes of being called by Yonkers P.D. (Towing Contract 9.) The contract further dictates requirements for the towing company's impound lot to which vehicles are towed. (Id. 9-11.) The towing company “shall look to the owner of the vehicle for payment of all fees at the time the vehicle is release from the [i]mpound [l]ot.” (Id. 12.) Vehicles may not be disposed of for a minimum of 60 days. (Id. 13.) The contract states that vehicles may be “authorized for disposal,” but does not elaborate further on the process for authorization or disposal, except to say that the towing company “will dispose of abandoned and unclaimed vehicles in accordance with the law.” (Id. 13-14.) Yonkers “will not be responsible for the payment of any fees and/or charges for privately owned vehicles that are towed, removed[,] or stored for any period of time.” (Id. 12.)

All impounded vehicles are towed to the towing company's storage facility unless directed otherwise. (Vehicle Impound Policy 3.) Whenever a vehicle is impounded, Yonkers P.D. prepares a YPD-11 “Impound/Recovered Vehicle Report.” (Id. 4-5.) The officer who impounds a vehicle is responsible for notifying the vehicle's listed owner via a YPD-44 “Impound Notification and Release Information Letter.” (Id. 5.)

At the time of the seizure relevant to this Action, Policy 180-4 permitted, but did not require, notice via a YPD-44 letter to lienholders. (Pl's Counter 56.1 ¶ 18.) In 2022, Policy 1804 was revised to require that a YPD-44 letter be sent to a vehicle's registered owners, titled owners, and lienholders. (Id.; see also Chafizadeh Decl., Ex. 12 (“Updated Vehicle Impound Policy”) (Dkt. No. 97-12) 6.) The contract between the towing company and Yonkers does not explicitly require the towing company to notify an impounded vehicle's owner. (See generally Towing Contract.)

An individual who wishes to retrieve a vehicle impounded pursuant to this policy must receive a release from the Westchester County District Attorney's office (the “DA”) that says that the vehicle is not needed in any prosecution as evidence, case enhancement, or discovery. (Pl's Counter 56.1 ¶ 5.) The DA release should be taken to Yonkers P.D., which then produces its own release that can be taken to the towing company. (Id. ¶ 14.) The towing company will release the vehicle if the owner or property interest holder provides a release from Yonkers P.D. and pays towing and storage fees. (Yonkers' Counter 56.1 ¶ 25.)

If the vehicle is not claimed and repossessed, Yonkers may deem a vehicle abandoned pursuant to N.Y. Vehicle and Traffic Law (“VTL”) § 1224, which provides that vehicles are abandoned:

if left unattended (a) with no number plates affixed thereto, for more than six hours on any highway or other public place; (b) for more than twenty-four hours on any highway or other public place, except a portion of a highway or public place on which parking is legally permitted; (c) for more than forty-eight hours, after the parking of such vehicle shall have become illegal, if left on a portion of a highway or public place on which parking is legally permitted; (d) for more than ninety-six hours on property of another if left without permission of the owner.

VTL § 1224(1). “Ownership of such abandoned vehicles, if unclaimed, shall vest in such local authority from the date [notice to the last owner] is given.” Id. § 1224(3)(c). Yonkers' custom is to then transfer the abandoned vehicle to the towing company, which can sell or auction the vehicle. (See Pl's Counter 56.1 ¶ 17.)

2. Seizure and Impounding

On April 23, 2021, a non-party car dealership sold Shamar Turner (“Turner”) a 2018 Land Rover (the “Vehicle”). (Yonkers' Counter 56.1 ¶¶ 5-6.) The dealership and Turner entered into a retail installment contract that was assigned to Santander. (Id. ¶¶ 6-7.) By virtue of the assignment, Santander obtained a lien on the Vehicle, which it perfected via a title issued on June 9, 2021. (Id. ¶¶ 8-9.)

The contract stated that Turner would default on its terms if he missed a payment or “expose[d] the [V]ehicle to . . . seizure, confiscation, or involuntary transfer.” (Decl. of Edward Vargas in Supp. of Pl's Mot., Ex. A (Dkt. No. 80-1) 8.) Santander reserved the right to repossess the Vehicle in the event of a default. (Id.)

On June 15, 2021, Turner was arrested for driving while intoxicated. (Yonkers' Counter 56.1 ¶ 14.) As a result, Yonkers seized the Vehicle, which YTR towed to its secure lot. (Id. ¶ 16; see also Duston Decl., Ex. 5 (“Yonkers' Resp. to Req. for Adm.”) (Dkt. No. 80-7) 3 (admitting that YTR towed and stored the Vehicle pursuant to an agreement with Yonkers).)

3. Post-Impound Events

On June 18, 2021, Santander learned that the Vehicle was impounded. (Pl's Counter 56.1 ¶ 6.) Santander retained the services of PAR North America (“PAR”) to retrieve the Vehicle from YTR. (Id. ¶ 9.) Santander and PAR were told that there was a “hold” placed on the Vehicle and that it could not be released without a release from the DA. (Id.) Santander received a letter from YTR dated July 13, 2021, that notified it of the Vehicle's impounding. (Id. ¶ 11.) Yonkers sent letters dated August 5, 2021, to Santander and Turner informing them that they had 10 days to claim the Vehicle, otherwise it would be “disposed of” in accordance with VTL § 1224. (Id. ¶ 12.)

The Parties dispute the reasons Santander and PAR did not successfully contact the DA to obtain a release, (id. ¶ 10 (disputing Santander and PAR's diligence in attempting to contact the DA via phone, mail, or visit)), but it is undisputed that neither Santander nor PAR successfully contacted the DA or obtained a DA release, (id. ¶ 15). It is similarly undisputed that Yonkers did not hold any hearing regarding the Vehicle. (Yonkers' Resp. to Req. for Adm. 6.)

On May 1, 2022, Yonkers deemed the Vehicle abandoned pursuant to VTL § 1224. (Pl's Counter 56.1 ¶ 17.) It appears that YTR titled the vehicle on or about June 29, 2022. (See Chafizadeh Decl., Ex. 10 (Dkt. No. 97-10) 3 (a bill of sale regarding the Vehicle listing YTR as the seller.) On September 1, 2022, YTR sold the Vehicle. (Id.)

B. Procedural Background

Santander initiated this Action on October 18, 2022. (See Dkt. No. 1.) Defendants answered on November 14 and 15, 2022. (See Dkt Nos. 13, 16.) While Defendants initially opposed Santander's Motion for Leave to File an Amended Complaint, (see Dkt. Nos. 41-43, 49-52), they later withdrew their Oppositions, (see Dkt. No. 54),...