On January 8th, Ohio Governor Mike DeWine signed into law a new piece of legislation aimed at providing a legal framework for resolving disputes related to the towing and storage of commercial vehicles following accidents. This law, which will come into effect on April 9th, was strongly supported by both the trucking and towing sectors in Ohio.
The new legislation allows vehicle owners to file a civil lawsuit against towing or storage service providers if there are disagreements over the recovery of the vehicle, its contents, or the fees charged. This legal pathway ensures that disputes over service charges can be settled in court, providing a clearer process for both vehicle owners and service providers.
Moreover, the law permits towing companies and storage facilities to seek legal recourse if a vehicle owner fails to pay the towing and storage fees within 46 days of receiving an invoice. This addition to the law helps service providers secure payment for their services.
The legislation was part of House Bill 403, which included a package of motor vehicle-related regulatory changes. It received overwhelming bipartisan support, passing the Senate unanimously on December 18 and in the House with minimal opposition by an 84-5 vote. The bill was sponsored by State Senator Al Cutrona (R) and was also supported by a mix of both Republican and Democratic senators.
Senator Cutrona highlighted that the legislation came about after extensive discussions between the Ohio Trucking Association and the state’s towing and recovery associations. The groups aimed to create a straightforward and fair dispute resolution process to address concerns about excessive towing and recovery bills expressed by the trucking industry. The goal was to keep commerce flowing smoothly by ensuring quick resolution of disputes and continued clearing of roadways after major accidents, which is crucial for public safety and the movement of goods.
The law outlines that if a vehicle owner disputes a towing or storage bill, they must pay the undisputed portion of the bill and provide a bond covering the disputed amount. The towing or storage service must then release the vehicle and any personal property within two business days after receiving the undisputed payment. A judge will subsequently determine the rightful amount to be paid from the bond for the disputed charges.
The court also has the authority to order additional payments or refunds and impose monetary penalties as deemed appropriate, providing a comprehensive framework for financial disagreements related to towing and storage services.
Tom Balzer, president and CEO of the Ohio Trucking Association (OTA), testified in favor of the legislation, pointing out the frequent occurrence of disputes over what are perceived as excessive fees charged by towing companies. Under the current system, these disputes can result in significant delays because the towing service may retain possession of a truck and its cargo until the disagreement is resolved. This situation can force trucking companies to either absorb high fees or face delays in fulfilling their transportation contracts.
The streamlined process introduced by the new law allows disputes over fees to be handled separately from the movement of cargo, thus reducing potential delays in logistics and helping maintain the flow of commerce.
Joe Hollabaugh, vice president of Shumaker Advisors and a representative for the Association of Professional Towers – Ohio, also supported the legislation. He emphasized the importance of resolving such disputes swiftly to ensure road safety and the smooth operation of commerce, noting that the only way towing companies can be compensated for their services is through payments from vehicle owners.
Overall, the new law is seen as a balanced approach to addressing the often contentious issue of towing fees, aiming to expedite dispute resolution and maintain safety and efficiency in commercial transportation within Ohio.
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