Auto-Owners Insurance Company v. J & T Towing, doing business as Crova Towing

Summary

The Michigan Court of Appeals held that a vehicle owner’s petition challenging towing and storage fees under MCL 257.252a must be filed within 20 days after the date of the notice of abandonment. Because Auto-Owners filed its petition 36 days after the notice, the court vacated the circuit court’s order and remanded with instructions to dismiss the petition with prejudice.

Holdings

1. MCL 257.252a(6) requires a vehicle owner requesting a hearing to file the petition within 20 days after the date of the notice of abandonment.
2. An alleged irregularity in complying with MCL 257.252d, a transfer of vehicle ownership after the notice, or alleged deficiencies in the notice does not extend or excuse the 20-day petition deadline under MCL 257.252a.
3. Because Auto-Owners' petition was untimely, it was not entitled to a hearing on the reasonableness of the storage fees, and the district court was required to dismiss the petition.
4. J & T Towing was not entitled to attorney fees and costs under MCL 257.252a because the statute authorizes such an award only after a hearing on the reasonableness of the fees, and Auto-Owners was not entitled to that hearing.

Questions Presented

1. Whether MCL 257.252a requires a vehicle owner to file a petition requesting a hearing on the reasonableness of towing and storage fees within 20 days after the date of the notice of abandonment.
2. Whether alleged irregularities in the abandoned-vehicle disposition procedure, the timing of vehicle ownership, or deficiencies in the notice excuse compliance with the statutory 20-day filing deadline.
3. Whether the district court was required to dismiss an untimely petition rather than hold a hearing and issue an order on the reasonableness of the fees.
4. Whether J & T Towing was entitled to attorney fees and costs under MCL 257.252a despite the absence of a properly authorized hearing.

Disposition

vacated