NYC Gains Legal Right to Dump Queens Tow Truck Co. that Runs Highway Monopoly

By:  Serach Nissim

 

New York City has gained the legal right to refuse to renew the contract for a Queens towing company that has raked up complaints for overcharging motorists and running a monopoly on nine NYC highways.

As reported by the NY Post, the supreme court of NY’s Appellate Division denied the application by Runway Towing Corp, to renew its city tow truck contract.  In late December, the First Judicial Department sided with the city’s Department of Consumer and Worker Protection (DCPW) finding that, the Ozone Park-based towing company “(Runway) repeatedly charged excessive towing and storage fees for tows”.

Since 2010, Runway has made more than $200 million off its contract with the NYPD to provide roadside assistance and towing services on the Brooklyn-Queens Expressway, the Kosciusko Bridge, the Cross Island Parkway in Queens, parts of the Belt Parkway in Brooklyn and Queens, the Brooklyn’s Gowanus Expressway and Prospect Expressway, the Staten Island Expressway, West Shore Expressway, Korean War Veterans Parkway and Dr. Martin Luther King Jr. Expressway on Staten Island.

The company is accused of regularly overcharging drivers by charging added fees to evade a regulated cap on towing fees. Runway’s latest contract with the city expires on Jan. 31, and based on the ruling, a renewal seems like a long shot.

In September, a class-action lawsuit was filed in Manhattan Supreme Court seeking over $58 million in damages from Runway Towing Corp, the NYPD, and the city Department of Consumer and Worker Protection.  As per the NY Post, the suit alleged that the Queens towing company ripped off thousands of drivers and had a monopoly on many New York City highways, while the NYPD and city officials let them run the illegal “racketeering enterprise”.  The suit accused the NYPD of repeatedly extending Runway’s contract since 2013 without accepting competitive bids, and turning a blind eye to the many complaints the Department of Consumer and Worker Protection was getting about the company.  The suit also accused Runway of using shady practices to beef up profits– including towing vehicles from all over the city to the company’s far off office in Ozone Park.

This alleged move cost drivers thousands of dollars in extra towing and storage charges, former Runway workers and clients told The Post. Towing fees under Runway’s city contract are supposed to hover around $125 plus tax.  Customers, however, say Runway has its ways of charging plenty of additional fees.  Extra fees are tacked on if the tow is longer than 10 miles, and more fees are added for storing a vehicle at their facility.

“We are pleased with the ruling,” a city Law Department spokesperson commented regarding the December 22nd decision.

Errol Margolin, a lawyer for Runway, told the Post that the company will fight the court’s ruling. “There is no basis for the Court’s decision as all charges are expressly authorized by the Rules,” Margolin said. “The decision will be challenged as Runway denies it committed any violations and believes the determination is irrational.”