TIPOTEX, KNAPPS, OTHER TOWING COMPANIES PUT ON NOTICE

By Juan Montoya

Remember our recent post about rogue towing companies gouging local motorists by striking deals with local businesses to remove vehicles who use their parking lots and charge exorbitant towing and storage fees to return them?

Well, unbeknownst to us, there had been a lawsuit filed in a local district court charging one of the city's leading car dealers and their officers with the very same thing. The lawsuit charges that Tipotex Chevrolet and its officers have engaged in similar practices and that often the victims of that behavior have been the poor.

On December 1, local attorney Phil Bellamy filed a lawsuit on behalf of Brownsville resident Alfonso Morales, but "anticipates finding a horde of similarly cheated, involuntary customers over the last four years" and contemplates finding enough victims to convert it into a class action lawsuit if necessary.

The lawsuit charges that Stephen Mark Roberts, vice-president and general manager of Tipotex "is at the center of a conspiracy "to defraud residents of Brownsville, Texas by providing involuntary towing services, and demanding outrageous fees under the threat of keeping and selling the vehicles of the involuntary customers."

Bellamy says the towing rates they charge their involuntary customers are "multiples of the amount previously authorized by the City of Brownsville, and bear no relation to the amount of work performed."

According to the lawsuit, on or about November 17, 2017, Morales, "a poor man currently living on

disability" was driving his 2003 Chrysler PT Cruiser and and had a flat tire on the expressway. He

drove onto the emergency lane and parked. While he was gone to get a spare tire, a Tipotex wrecker  towed his vehicle to the Tipotex Chevrolet dealership.

When Morales discovered what had happened, and went to Tipotex the next day with $80 – all the money he had – and they refused to assist him and "treated him like dirt." Humiliated and unable to pay and suffering chest pains as a result, Morales went home to bed.

Morales sought legal help and went to Bellamy for assistance and on November 21 the attorney wrote a demand letter to Alice Marsletta Cramer Knapp, Francis Everett Knapp, Francis Everett Knapp, Jr. and Mark Roberts, "regarding the outrageousness of their conduct and the conduct of their employees."

"There is only one way to resolve this situation that you created, avoid financial damage, and prevent justifiable damage to the Tipotex Chevrolet reputation," Bellamy wrote. "Demand is made that you advise me in writing or by email by no later than the close of business day today, that Mr. Morales may go pick up his vehicle without charge by no later than tomorrow morning. Additionally, the flat tire must be repaired by you at no expense to Mr. Morales."

They refused and ignored it.

Marsletta Knapp – who has not been added to the lawsuit yet – is the President, Dealer Operator, and Director of Defendant Tipotex. Francis Everett Knapp, and Francis Everett Knapp, Jr. will be named as likely future defendants as discovery proceeds.

Morales – accompanied by Bellamy – went to Tipotex and On Friday, November 24, 2017, and under duress, paid the full amount("the ridiculous sum of $635.55") demanded by Tipotex which included $465 for towing and storage fees of $171.55.

"By comparison," the lawsuit states, "the Brownsville Police Department’s schedule of fees had a towing fee of $75.00 and a storage fee of $20.00. Wrecker companies no longer are saddled with charging fair amounts, and as of this moment may gouge their involuntary customers to their hearts’ delight with sanction, yet."

Morales charges that the defendants are guilty of fraud because they proceeded to tow his vehicle with questionable authority and without disclosing the outrageous charges they would charge. (They) were under a duty to him as an involuntary customer (and many more upon information and belief) to disclose this fact. 

He states that he would not have consented to the involuntary transaction had he known what (they)  intended to do to him. The lawsuit states that (they) knew he was uninformed and did not have

an equal opportunity to discover the facts.

Additionally, the lawsuit charges the defendants with breach of contract "by charging an

exorbitant amount, and holding (Morales') vehicle hostage until he paid or his vehicle was sold."

Also, the lawsuit states that the defendants violated the Texas Deceptive Trade Practices-Consumer

Protection Act (the “DTPA”) because of  their "acts and omissions"  and that their misrepresentations, acts and practices were false, misleading, and deceptive.

The lawsuit is demanding that the court award Morales damages for mental anguish damages.and seeks the recovery under the DTPA of treble damages, attorney’s fees, and costs of court, and any other relief deemed proper. The lawsuit states that the Tipotex and the Knapps are liable to Morales  and "upon information and belief, many other persons, for actual damages."

"In discovery, I will get every single document related to Mr. Morales’s case, and every single towing receipt for the last four years (fraud statute of limitations is 4 years)," Bellamy said. "This case will involve many, many victims. At some point, I have to look at when a suit becomes large enough that it should become a class action."

"My current focus is on Tipotex Chevrolet towing fraud, but... I am starting to keep an eye on other towing companies who are likely committing fraud to a substantial degree," he said.