Kohn, Swift & Graf, P.C. is pleased to announce that it has reached an agreement with the City of Philadelphia resolving the firm’s longstanding “courtesy tow” litigation. Lawyers Joseph Kohn, William Hoese, and Aarthi Manohar worked on the case with co-counsel David Rudovsky of Kairys, Rudovsky, Messing, Feinberg & Lin.

The agreement will end the City’s policy of relocating private vehicles in the event of parades, races, construction, or other street work without pre- or post-tow notice to vehicle owners. Joseph Kohn told the Philadelphia Inquirer the City’s existing policy had amounted to a “taking of property and a due process violation.”

The agreement not only settles the individual civil rights claims of 36 Plaintiffs for $750,000 but outlines a City promise to create a website for tracking relocated vehicles in real time.

Initially filed in May 2021, the proposed class action sought relief for the City’s unlawful interference with the Plaintiffs’ possessory interests in their vehicles and due process violations for lack of notice on behalf of four individuals and similarly situated vehicle owners whose cars had been relocated – one of whom had been arrested at gunpoint for driving a vehicle that had been relocated and listed as stolen in a police database. Two Plaintiffs from the initial litigation, Eastman v. City of Philadelphia, rejected settlement offers from the City when the City refused to change its existing policy and provide vehicle owners with adequate information about so-called courtesy tows.

34 additional Plaintiffs signed on to a second lawsuit, Smith v. City of Philadelphia, alleging the same civil rights violations and seeking policy changes to fix the City’s refusal to notify vehicle owners.

The City sought dismissal of both lawsuits, arguing that the Plaintiffs in both cases could not demonstrate that the City was directly responsible for relocating any vehicles, that unsanctioned third-party towers were a possible culprit, and that the Plaintiffs failed to show they were harmed as a result of the City’s actions. Former Judge Goldberg of the Eastern District of Pennsylvania rejected the City’s position, and the cases were permitted to proceed.

In an unpublished decision denying the City’s motion to dismiss the Smith litigation, Judge Goldberg noted that the City’s lack of notice was “particularly egregious” since the City already had a database infrastructure in place for recording vehicle relocations. No. 22-5092, 2025 LX 266600, at *39 (E.D. Pa. Feb. 3, 2025). Similarly, denying the City summary judgment motion in Eastman, Judge Goldberg held that the City failed to cite evidence regarding what the City had affirmatively done to provide notice to vehicle owners and instead relying “on speculation of what might have been.” No. 21-2248, 2024 LX 49547, at *24 (E.D. Pa. Dec. 5, 2024).

The Smith and Eastman cases were later consolidated, and nearly five years after the initial complaint was filed, the parties agreed to settle the case with the assistance of a court approved mediator, David Richman.

In addition to promising to create a vehicle tracking website, leveraging the Philadelphia Parking Authority’s website, the City has agreed to update the placement of and language on temporary no parking signs to ensure reader clarity, as well as place stickers on vehicles that have been relocated so that no tickets and fines are assessed.

Kohn Swift & Graf commends the courtesy tow Plaintiffs on creating a change that will help residents and drivers in Philadelphia for years to come.