Gov. Shapiro signed an unconstitutional law making PPA a monopoly, Philly towing companies say in lawsuit

A 2023 Pennsylvania state law gave the Philadelphia Parking Authority an unconstitutional monopoly over the business of towing abandoned vehicles, local towing companies allege in a new federal lawsuit.

The 10 companies argue that a law signed by Gov. Josh Shapiro in December upended more than two decades of business relationships they have in Philadelphia. That interference in contracts is prohibited by both the Pennsylvania and U.S. constitutions, the lawsuit argues.

The Philadelphia Independent Towers and Salvors Association and the towing companies filed the lawsuit against the PPA, Shapiro, and Pennsylvania Attorney General Michelle Henry on Oct. 29 in the Eastern District of Pennsylvania.

The PPA and Henry’s office declined to comment. The lawyers representing the towing companies and Shapiro’s office did not respond to requests for comment.

Private towing companies had contracted with the city to remove abandoned vehicles since 2000, the complaint says. The companies would receive an abandoned vehicle report from the Philadelphia Police Department’s Neighborhood Services Unit, and tow the car to a storage facility.

Between 2022 and 2023, the 10 companies represented in the lawsuit towed about 13,000 abandoned cars, according to the complaint. (Not to be confused with “courtesy towing,” in which a legally parked car is moved because parking is temporarily prohibited, such as ahead of an event.)

“Plaintiffs rely upon these contracts as their main source of income, as they do not provide private towing services but serve the City of Philadelphia for years to clean up the streets,” the lawsuit says.

Things changed in the second half of 2023, when the PPA allegedly began towing abandoned cars, which the lawsuit says was done without authorization. And by the end of the year, state legislators included in an omnibus bill language that made the PPA “a designated municipal agency and authorized salvor” of abandoned cars in Philadelphia.

“The act is clear that only PPA can tow abandoned vehicles within the city of Philadelphia’s limits,” the complaint says. “This is in violation of Plaintiffs’ long-standing and newly extended contract with the City of Philadelphia and is unconstitutional on its face.”

In September, Philadelphia extended the contract with the towing companies through November 2025. It requires the companies to store, return, or dispose vehicles that were abandoned throughout the city.

But the towing companies say that they had to lay off employees, which makes it difficult for them to fulfill other elements of their contract with the city. The lawsuit argues that by “imparting the obligations of contracts,” the law is unconstitutional.

The companies that brought the lawsuit are: K&A Salvage Auto Salvage Inc., Morton Towing & Recovery, Delaware Valley Towing & Auto Parts, Steffa Metals Co. Inc., Above All Salvage Inc., Orthodox Auto Group, Freddie’s Auto Parts Inc., Jim’s Auto Recycling Inc., Jamison’s Towing Service, and Philadelphia Towing and Transport.

They are asking that a federal judge declare the law null and void, order the PPA to stop towing abandoned vehicles in Philadelphia, and compensate the companies for the earnings that they have lost since the law was enacted.