DOJ Lawsuit S&K Towing 2026: Full Case Breakdown

The U.S. Department of Justice sued S & K Towing, Inc., a San Clemente, California towing company, alleging it illegally auctioned or disposed of as many as 148 vehicles belonging to active-duty servicemembers many towed directly from Marine Corps Base Camp Pendleton. The DOJ lawsuit against S&K Towing is a federal civil rights enforcement action, not a class action other consumers can join, and it has already reached a settlement.

The case is notable for its scale and its timeline: the alleged violations span nearly five years, continued even after a military legal aid attorney directly warned the company it was breaking federal law, and ended with a $160,000 settlement specifically earmarked to compensate the affected servicemembers.

If you’re researching other federal enforcement actions protecting military members, our coverage of the Alaska Airlines passenger lawsuit shows a different kind of individual claim moving through the courts around the same time.

One fact worth knowing: according to the DOJ’s complaint, a company manager responded to a military attorney’s warning that the towing company was violating federal law by saying, “We do this all the time” — and the company kept selling servicemembers’ vehicles for nearly a year afterward.

Quick Facts

Detail	Information
Plaintiff	United States of America (Department of Justice)
Defendant	S & K Towing, Inc. (San Clemente, California)
Court	U.S. District Court for the Central District of California
Case Type	Federal civil rights enforcement action — not a class action
Core Allegation	Illegally auctioning or disposing of servicemembers’ vehicles without court orders, violating the Servicemembers Civil Relief Act
Complaint Filed	March 25, 2026
Settlement Agreement	July 14, 2026

What Is the DOJ Lawsuit Against S&K Towing About?

The DOJ lawsuit against S&K Towing centers on the Servicemembers Civil Relief Act (SCRA), a federal law that requires towing companies to obtain a court order before selling or disposing of a vehicle owned by a servicemember protected under the statute. The Justice Department alleges S&K Towing ignored that requirement entirely.

According to the complaint, filed March 25, 2026, in the U.S. District Court for the Central District of California, S&K Towing sold or disposed of as many as 148 vehicles owned by servicemembers between August 28, 2020, and April 15, 2025 — many of which had been towed from Marine Corps Base Camp Pendleton. Some vehicles were reportedly registered to addresses on the base itself.

Key Takeaway: This is a federal government enforcement lawsuit protecting a specific, already-identified group of servicemembers — not a broad consumer class action the general public can sign up for.

Who Are the Parties Involved?

Party	Role	Details
United States of America	Plaintiff	Represented by the DOJ’s Civil Rights Division (Housing and Civil Enforcement Section) and the U.S. Attorney’s Office for the Central District of California
S & K Towing, Inc.	Defendant	Towing company based in San Clemente, California, under contract with Camp Pendleton
Affected servicemembers	Non-party beneficiaries	Up to 148 identified individuals whose vehicles were allegedly sold or disposed of without required court orders

Timeline: How the Dispute Started

• August 28, 2020 – April 15, 2025: S&K Towing allegedly sells or disposes of as many as 148 vehicles owned by SCRA-protected servicemembers, many towed from Camp Pendleton, without obtaining the court orders the SCRA requires.
• May 2024: A Military Legal Assistance attorney contacts S&K Towing directly and explains that its practices violate the SCRA. A company manager reportedly responds, “We do this all the time.”
• After May 2024: According to the complaint, S&K Towing continues selling and disposing of servicemembers’ vehicles without court orders, despite the direct warning.
• March 25, 2026: The DOJ files its civil complaint against S&K Towing in the Central District of California.
• July 14, 2026: The United States and S&K Towing enter into a settlement agreement, roughly four months after the complaint was filed.

Key Takeaway: The DOJ’s complaint alleges the company was directly warned about the legal violation nearly a year before the pattern is said to have ended — a detail likely to have shaped the government’s decision to pursue formal litigation rather than informal resolution.

Key Allegations Explained

The DOJ’s complaint makes several specific factual allegations against S&K Towing:

• No SCRA compliance program: Justice officials said the company had no SCRA policies or training materials in place and took no steps to verify whether vehicle owners were in the military before selling or disposing of towed vehicles.
• Contractual obligation ignored: S&K Towing’s contract with Camp Pendleton required compliance with all applicable federal and state laws, but the company allegedly made no effort to comply with the SCRA specifically.
• Knowing continuation after warning: Vehicles continued to be auctioned or disposed of even after a Military Legal Assistance attorney directly flagged the legal violation in May 2024.
• Sales despite known military status: In some instances, the complaint alleges S&K Towing auctioned vehicles even after being told the owner was a servicemember.

Key Takeaway: The complaint frames this as more than a paperwork oversight — it alleges the company had no compliance systems at all and continued the practice even after being explicitly warned.

Legal Claims Being Made

The DOJ’s lawsuit was brought under the Servicemembers Civil Relief Act, a federal statute designed to ease legal and financial burdens on military members during active duty, including protections against certain vehicle repossessions, towing, and storage-related sales. The SCRA specifically requires a court order before a lienholder — including a towing company holding a vehicle for unpaid towing or storage fees — can sell or dispose of a covered servicemember’s vehicle.

What the Government Was Seeking

The DOJ’s complaint sought to hold S&K Towing accountable for the alleged pattern of SCRA violations and to secure monetary compensation for the affected servicemembers, along with assurances the practices would not continue if the company remained in the towing and storage business.

The Defendant’s Response

Public sources reviewed for this article do not include a detailed on-the-record denial or defense statement from S&K Towing. The company agreed to settle the case within approximately four months of the complaint being filed, without the matter being reported as proceeding to trial or a contested judgment on the merits.

Court and Case Details

Field	Detail
Case Name	United States v. S & K Towing, Inc.
Court	U.S. District Court for the Central District of California
Case Opened	March 25, 2026
DOJ Components	Civil Rights Division; Civil Rights – Housing and Civil Enforcement Section; U.S. Attorney’s Office, C.D. Cal.
Governing Statute	Servicemembers Civil Relief Act (SCRA)
Settlement Date	July 14, 2026
Settlement Amount	$160,000, earmarked to compensate affected servicemembers

Current Legal Status / Latest Update 2026

As of July 14, 2026, the case is resolved. The United States and S&K Towing entered into a settlement agreement under which the company will pay $160,000 to compensate the servicemembers affected by its conduct. The settlement also requires that if S&K Towing ever reenters the towing or vehicle storage business, it must adopt SCRA-compliant policies, procedures, and training materials to prevent future violations.

Because this settlement resolves a specific, DOJ-identified group of affected servicemembers rather than establishing an open claims process, there is no general public claim form associated with this case. Servicemembers or dependents who believe their SCRA rights may have been violated — whether connected to this case or a separate towing dispute — are directed by the DOJ to contact the nearest Armed Forces Legal Assistance Program Office.

Key Takeaway: This case moved unusually fast for federal litigation — from complaint to signed settlement in under four months — which is common in DOJ civil rights enforcement matters where the underlying facts are well-documented and the defendant elects not to contest liability at trial.

What Could Happen Next in This Case

Because the case has already settled, the primary remaining steps are administrative:

• Distribution of the $160,000 settlement fund to the identified affected servicemembers, a process typically coordinated by the DOJ rather than a private claims administrator.
• Ongoing compliance monitoring, should S&K Towing resume towing or storage operations, given the settlement’s requirement that it adopt SCRA training and policies if it does.
• Potential future DOJ scrutiny of other towing companies with Camp Pendleton-area contracts, given the department’s stated broader SCRA enforcement priorities.

Similar or Related Cases for Context

The S&K Towing case is part of a broader, active pattern of DOJ enforcement against towing companies over servicemembers’ vehicles in 2026:

Case	Company	Alleged Vehicles	Settlement
United States v. S & K Towing, Inc.	S&K Towing (San Clemente, CA)	Up to 148	$160,000 (July 2026)
DOJ enforcement action	Vehicle Management Solutions Inc. (San Antonio, TX)	Approximately 93	$280,000 (May 2026)

Separately, in June 2026 the DOJ filed a distinct SCRA lawsuit against the New Mexico Supreme Court and the New Mexico Board of Bar Examiners — an unrelated matter involving licensing rather than towing, but part of the same broader federal enforcement push. Since 2011, the DOJ reports it has obtained over $484 million in monetary relief for more than 149,000 servicemembers through SCRA enforcement generally.

Key Takeaway: S&K Towing is not an isolated case — it’s one of at least two 2026 towing-related SCRA settlements, reflecting active DOJ enforcement attention on this specific type of violation.

Frequently Asked Questions

What is the DOJ lawsuit against S&K Towing about?

The DOJ lawsuit alleges that S&K Towing, a San Clemente, California towing company, illegally sold or disposed of as many as 148 vehicles owned by servicemembers between August 2020 and April 2025, many towed from Marine Corps Base Camp Pendleton, without obtaining the court orders required under the Servicemembers Civil Relief Act.

Who is involved in the DOJ lawsuit against S&K Towing?

The plaintiff is the United States of America, represented by the DOJ’s Civil Rights Division and the U.S. Attorney’s Office for the Central District of California. The defendant is S & K Towing, Inc. The case also involves an identified group of up to 148 servicemembers whose vehicles were allegedly sold or disposed of without proper legal process.

What was the government seeking in this case?

The DOJ sought monetary compensation for the servicemembers affected by S&K Towing’s alleged SCRA violations, along with assurances against future violations. The case resolved with a $160,000 settlement earmarked to compensate the affected servicemembers, plus a requirement that S&K Towing adopt SCRA compliance policies if it resumes towing operations in the future.

What happens to the $160,000 settlement fund?

The settlement designates $160,000 to compensate the servicemembers identified as affected by S&K Towing’s conduct. This is not a public claims process open to any consumer — it’s tied to the specific group of servicemembers whose vehicles the DOJ’s investigation identified. Servicemembers who believe their own SCRA rights were separately violated are directed to contact the nearest Armed Forces Legal Assistance Program Office.

What is the current status of the DOJ lawsuit against S&K Towing?

The case is resolved. The DOJ filed its complaint on March 25, 2026, and the parties entered into a settlement agreement on July 14, 2026, meaning the litigation concluded without a trial. S&K Towing will pay $160,000 to compensate affected servicemembers and must implement SCRA compliance measures if it reenters the towing business.

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Sources

• [DOJ Sues California Towing Company for Illegally Auctioning Servicemembers’ Vehicles — U.S. Department of Justice, Office of Public Affairs](https://www.justice.gov/opa/pr/doj-sues-california-towing-company-illegally-auctioning-servicemembers-vehicles)
• [United States v S & K Towing, Inc (C.D. Cal.) — U.S. Department of Justice, Civil Rights Division](https://www.justice.gov/crt/case/united-states-v-s-k-towing-inc-cd-cal)
• [Feds sue California towing company for illegally selling cars belonging to U.S. Military members — CDLLife](https://cdllife.com/2026/feds-sue-california-towing-company-for-illegally-selling-cars-belonging-to-u-s-military-members/)
• [Southern California towing company sold servicemembers’ cars illegally, DOJ lawsuit claims — KTLA](https://ktla.com/news/california/orange-county-towing-company-servicemember-vehicles-lawsuit/)
• [DOJ sues Orange County towing company for auctioning vehicles owned by military members — CBS Los Angeles](https://www.cbsnews.com/losangeles/news/doj-sues-orange-county-towing-company-illegally-auctioning-vehicles-military/)
• [OC Towing Company Settles Suit with Justice Department — MyNewsLA.com](https://mynewsla.com/crime/2026/07/14/oc-towing-company-settles-suit-with-justice-department/)