Towing company says A.G. out of line

Kline accuses Lawrence firm of price-gouging violations

A lawyer for the owner of a Lawrence-based towing company told a judge Friday that Kansas Atty. Gen. Phill Kline’s office acted beyond its jurisdiction when it accused the company of price gouging and sued under the Kansas Consumer Protection Act.

David Hauber, who represents Kevin Raasch, owner of TransMasters Towing, argued that federal law prevents states from regulating towing prices. He also said the state’s consumer protection law does not specifically define when charges reach price-gouging levels.

“What we have is no evidence of maximum price,” Hauber told Douglas County District Court Judge Paula Martin.

Martin heard arguments on Hauber’s motion to dismiss the case for about an hour Friday afternoon but made no ruling.

Kline filed the lawsuit against the company in November, alleging that TransMasters violated the consumer protection law 14 times since 1999.

Kline’s office has asked Martin to fine the company $10,000 per count. In one case, Kline’s office alleged a woman was told she had to pay as much as $1,500 to get her car back after the fee was said to have grown incrementally.

Raasch has previously defended his business and attributed the claims to people being upset for having to pay for towing.

The federal jurisdiction argument at issue in the case involves a law passed in 1995 that makes it illegal for states and local governments to enact or enforce a law that regulates the price, route or service of a motor carrier.

“If all they are relying on is the Kansas Consumer Protection Act, these claims are totally pre-emptive by law,” Hauber said.

In a brief filed by the state, Deputy Atty. Gen. Bryan Brown argued the federal law does not apply to states attempting to regulate the price of towing a vehicle if the towing is unauthorized, such as if a vehicle’s owner was seriously injured and incapacitated after an accident.

Brown cited the case of Brenda Penrod, whose vehicle was towed by TransMasters. Penrod is a Topeka woman who was ejected from a vehicle in a May 2004 accident that involved alcohol along U.S. Highway 40, according to the accident report. Penrod was under the van when emergency responders found her, and she was later flown to a Kansas City area hospital.

“How that could be a consensual tow, I have no idea,” Brown told Martin.

During Friday’s hearing, in response to a question from Martin, Brown admitted the state’s consumer protection law did not specify a maximum legal price.

“There is no formula that can give us an exact number,” Brown said.

Brown also said the state asked several area towing companies how much they would charge under similar circumstances.

Compared with those examples, Raasch’s prices deviated greatly above the average, Brown said. He compared the prices to being an 11 if four was within the acceptable range.

“We are in what medically is called statistical instability,” Brown said.

After the hearing, he also defended the attorney general’s effort in the suit against Raasch.

“It’s really a case where Phill Kline is on the progressive road at this point,” Brown said.