The State of Alabama appealed a temporary restraining order ("TRO") allowing Gary Lamar Smith, Jr., and SOS Towing, Inc. ("SOS"), the family business owned and operated by Smith, Jr., to recover seized personal property during the pendency of a forfeiture action. SOS would sometimes tow vehicles for the Mobile Police Department; in September 2019, the Smiths were arrested in Mobile for alleged insurance fraud regarding that work. The City of Mobile alleged that the Smiths had committed fraud by charging insurance companies towing and storage fees that were greater than the maximum fees allowed under a city ordinance. The police seized three tow trucks owned by SOS and a tow truck owned by Smith, Sr., and used by SOS. The State later filed a complaint seeking the forfeiture of the four trucks. Smith, Jr., and SOS moved for a TRO or a preliminary injunction, seeking the return of the tow trucks during the pendency of the forfeiture action. The parties disagreed about whether Alabama's forfeiture statutes provided the exclusive means of obtaining the return of seized personal property during forfeiture proceedings. The trial court concluded that section 28-4-287 did not provide such means for a claimant to obtain possession of seized property during forfeiture proceedings. Thus, the trial court issued the TRO under Rule 65, ordering the return of the tow trucks. The trial court did order Smith, Jr., and SOS to post a $5,000 bond to receive their trucks, to which they complied. The Alabama Supreme Court determined section 28-4-287 was indeed the exclusive means for obtaining seized personal property during the pendency of a forfeiture action, and injunctive relief under Rule 65 was unavailable as a means for a claimant to obtain such property. Accordingly, the Court concluded the trial court erred by entering a TRO ordering the trucks to be returned to Smith, Jr. and SOS. Judgment was reversed and the matter remanded for further proceedings. View "Alabama v. Two White Hook Wreckers et al." on Justia Law
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