How the Texas Department of Licensing and Regulation LOST a Double-Parking Enforcement Case: A Legal Analysis of the Proposal For Decision

Introduction

In a recent legal clash, the Texas Department of Licensing and Regulation (TDLR) went head-to-head with Parking Compliance Solutions, LLC (PCS) over a contentious nonconsent tow at Saddle Creek Apartments in Austin, Texas. This case, which delves into the nuances of the Texas Occupations Code, provides a vivid illustration of the complexities surrounding towing regulations. This blog post unpacks the case details, the arguments from both sides, and why the TDLR ultimately lost this battle.

Case Overview

Parties Involved:

  • Petitioner: Texas Department of Licensing and Regulation (TDLR)

  • Respondent: Parking Compliance Solutions, LLC (PCS)

Incident Details:

  • Date: February 25, 2020

  • Location: Saddle Creek Apartments, 10801 Old Manchaca Road, Austin, Texas

  • Vehicle: Black 2013 Dodge Avenger

  • Violation: The vehicle was double parked, occupying two parking spaces.

Key Facts:

  • The vehicle owner was a resident at Saddle Creek Apartments and was authorized to park there.

  • The lease agreement signed by the vehicle owner explicitly prohibited double parking.

  • PCS had a written agreement with the parking facility owner to tow vehicles violating parking rules, including double parking.

  • Proper signage authorizing nonconsent tows was posted in compliance with state and local laws.

Hearing Details:

  • Date: January 26, 2022

  • Platform: Zoom

  • Presiding Judge: Administrative Law Judge (ALJ) Whitney L. Stoebner

  • TDLR Attorney: Anthony G. Read

  • PCS Attorney: Ken Ervin

Legal Issues Presented

  1. Did PCS violate Texas Occupations Code §§ 2308.255 and 2308.253 by towing a double-parked vehicle?

  2. Is double parking a valid reason for a nonconsent tow under the Texas Towing and Booting Act (Chapter 2308)?

Relevant Laws and Rules

  • Texas Occupations Code § 2308.255(b): Limits the situations in which a towing company may tow an unauthorized vehicle.

  • Texas Occupations Code § 2308.253: Specifies conditions under which a vehicle may be towed from an apartment complex parking facility.

Analysis

Jurisdiction and Notice: There were no contested issues regarding jurisdiction or notice, as both parties stipulated these points.

Key Arguments and Findings:

  1. Towing Justification:

    • TDLR argued that PCS violated §§ 2308.255 and 2308.253 by towing a vehicle for double parking, a reason not listed under § 2308.253.

    • ALJ Stoebner found that § 2308.253 applies to vehicle owners/operators, not towing companies, thus not limiting the actions of PCS.

  2. Authorized Vehicle Status:

    • The vehicle owner, being a resident, had consent to park in the facility, making the vehicle authorized under § 2308.002(13).

    • Since the vehicle was authorized, the restrictions of §§ 2308.255 and 2308.253 did not apply.

  3. Contractual Agreement:

    • The tow was performed under a contractual agreement between PCS and the parking facility owner, which allowed for towing vehicles that violated parking rules, including double parking.

    • The ALJ concluded that this agreement was valid and within the scope of PCS’s operations.

Burden of Proof: TDLR failed to prove that the vehicle was unauthorized or that PCS violated Chapter 2308. The vehicle was authorized, and PCS acted within the terms of its contractual agreement.

Conclusion

ALJ Stoebner concluded that TDLR did not meet its burden of proof to demonstrate that PCS violated Texas Occupations Code §§ 2308.255 and 2308.253. Consequently, no administrative penalty or sanction was recommended against PCS.

Implications for Property Owners and Towing Companies

This case underscores the importance of understanding the specific applications of the Texas Occupations Code. Towing companies should ensure their actions are in strict compliance with contractual agreements and posted signage. Property owners must be diligent in drafting clear agreements with towing services to avoid legal ambiguities. For residents, this case highlights the necessity of adhering to lease agreements and posted parking rules to avoid complications.

Final Thoughts

The TDLR vs. PCS case highlights the intricate details of regulatory compliance in nonconsent towing situations. Both towing companies and property owners must navigate these regulations carefully to avoid legal pitfalls. This case serves as a reminder of the critical role that precise contractual agreements and adherence to legal standards play in property management and regulatory enforcement.

Behind the Tow: Why the TDLR Couldn't Make Its Case Against PCS

In this important ruling, the Texas Department of Licensing and Regulation (TDLR) faced defeat in a high-stakes legal tussle against Parking Compliance Solutions, LLC (PCS) over a nonconsent tow incident at Saddle Creek Apartments. The case revolved around the towing of a double-parked vehicle and the interpretation of the Texas Occupations Code. This blog post delves into the details of the case, the arguments made, and why TDLR's case fell apart.

Case Background:

  • Date of Incident: February 25, 2020

  • Location: Saddle Creek Apartments, Austin, Texas

  • Vehicle Involved: Black 2013 Dodge Avenger

  • Violation: Double parking

Legal Battle:

  • Hearing Date: January 26, 2022

  • Platform: Zoom

  • Judge: Administrative Law Judge Whitney L. Stoebner

  • TDLR's Argument: PCS violated towing regulations by towing for double parking, which is not listed under § 2308.253.

  • PCS's Defense: The vehicle was towed per a valid agreement with the property owner, and the vehicle was authorized under § 2308.002(13).

Outcome: The judge ruled that TDLR failed to prove its case, citing that the vehicle was authorized and the tow was within the scope of PCS's agreement with the property owner. No penalties were recommended against PCS.

This case serves as a crucial reminder for property owners and towing companies to thoroughly understand and comply with contractual agreements and towing regulations to avoid legal complications.

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When TDLR Revokes a Tow Operator’s License: An In-Depth Analysis of a Typical Case