Two companies contracted by the city of El Paso will have to pay damages and civil penalties for improperly auctioning 176 impounded vehicles belonging to deployed U.S. military members, the U.S. Department of Justice and El Paso officials said.
The legal settlement — totaling more than $260,000 — follows a Justice Department investigation that started with a complaint from a U.S. Army lieutenant colonel whose pickup truck was sold at auction while she was deployed to Afghanistan in 2019.
Courts: 'He just asked for help': Family files lawsuit after veteran dies in El Paso police custody
The lawsuit's settlement was announced this month by the Justice Department and the city of El Paso. The city maintains the companies it contracted were solely responsible with ensuring compliance with laws regarding impoundment and auctions.
Last year, the U.S. government sued the city of El Paso and two companies contracted to run the city's impound lot for violating the Servicemembers Civil Relief Act (SCRA), a 1940 federal law that protects members of the military from legal actions while they are deployed.
The city contracted United Road Towing, Inc. (also known as UR Vehicle Management Solutions) and Rod Robertson Enterprises, Inc. to run impound vehicle storage and auctions at the city lot on Railroad Drive. The DOJ accused the companies of illegally auctioning 176 vehicles owned by military members since 2015 by failing to obtain court orders to enforce liens as required by SCRA.
"Members of our armed forces should not have to worry about their cars being auctioned off while they are on the front lines defending our freedoms, liberties and rights," said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, which enforces the SCRA.
“These settlements should send a strong message to other cities that they should not take advantage of the rights of our servicemembers while they are defending us from harm," Clarke said in a statement.
US Army officer in Afghanistan when truck sold in El Paso
The initial complaint leading to the discovery of numerous violations of the servicemember protection act came from a U.S. Army officer serving in Afghanistan, stated the U.S. government's lawsuit against the city of El Paso filed on Feb. 2, 2023.
In 2016, Lt. Col. Lisa Dechent, who is a 2005 graduate of the U.S. Military Academy at West Point, purchased a white 2016 Chevrolet Silverado Z71 truck with her then partner Richard Lee Livingston, who at that time was a chief warrant officer 3 in the Army, the DOJ lawsuit stated.
The lawsuit stated that Dechent (whose name at that time was Maj. Lisa Livingston) and Richard Livingston were registered co-owners of the truck.
On Jan. 24, 2019, Dechent deployed from Fort Bliss to Afghanistan. On June 9, while Dechent was on deployment, Livingston was involved in an accident with the truck. The El Paso Police Department impounded the vehicle, which was towed to the Railroad Drive impound lot, the lawsuit stated.
Archives: State of the Military 2019: Fort Bliss commanding general heading to Afghanistan
On Sept 10, 2019, United Road Towing sold the truck at auction for $6,200, without first obtaining a court order in violation of SCRA. At the time, Dechent still owed about $13,000 on a finance loan she used to buy the vehicle, the lawsuit stated.
On Oct. 7, 2019, while still deployed, Dechent learned for the first time that her truck had been auctioned. Three days later, the Justice Department received a referral from an Army lawyer regarding the sale of Dechent’s truck and an investigation was opened.
City of El Paso conducts audit
The Justice Department determined that the city of El Paso had no written policies or procedures regarding SCRA compliance and accused the contracted companies of failing to determine if the vehicle owners were protected under the servicemembers act.
In conjunction with the investigation by the Justice Department, the city conducted its own an audit with the El Paso Police Department and Internal Auditor.
Settlement, fines in El Paso impound vehicle auction lawsuit
As part of the lawsuit settlement, the two impound lot contractors will each establish settlement funds to compensate impacted military members, officials said.
From Jan. 1, 2015, to April 15, 2019, Rod Robertson Enterprises auctioned 143 vehicles registered to owners protected by the SCRA without court approval, the DOJ lawsuit stated.
As part of the settlement, Rod Robertson Enterprises will provide about $140,000 in damages to 122 servicemember vehicle owners from January 1, 2015, to April 15, 2019, and pay a civil penalty of $20,000, documents stated.
United Road Towing auctioned 33 vehicles in violation of SCRA from May 20, 2019, and Feb. 11, 2020, the DOJ stated. United Road Towing will pay a civil penalty of $25,000 and compensate about $58,000 in damages to 50 servicemembers from May 2019 to June 11, 2023.
The city of El Paso was issued a $20,000 civil penalty, which city officials said will be paid by the two companies.
The city also racked up about $130,000 in legal expenses, which it is working to resolve in claims against each vendor for reimbursement, officials said.
El Paso makes changes after Department of Justice lawsuit
The city of El Paso said that it updated its policies and procedures to its Abandoned Auto Unit Operations Manual in June to prevent future problems involving SCRA regulations.
The city's Office of Veteran and Military Affairs will continue to ask for input from the Army to help protect soldiers’ rights under SCRA, officials added.
"We are pleased to have reached an agreement with the DOJ in this matter," City Attorney Karla Nieman said in a statement. "This resolution underscores our commitment to upholding federal laws protecting our servicemembers. This was particularly important to the city given the longstanding and close relationships we have with Fort Bliss, whose soldiers, family members, and veterans are considered an integral part of our community.
"We continue to work diligently to ensure that all contractual obligations are met and that proper procedures are followed," Nieman said.
For more information about the Justice Department’s SCRA enforcement, visit www.servicemembers.gov .
This article originally appeared on El Paso Times: El Paso settles DOJ lawsuit after 176 soldiers' vehicles improperly auctioned
Local News
