MODZELEWSKI‘S TOWING & STORAGE, INC., ET AL. v. COMMISSIONER OF MOTOR VEHICLES ET AL.
SC 21039
Supreme Court of Connecticut
September 23, 2025
Mullins, C. J., and McDonald, D‘Auria, Ecker, Alexander, Dannehy and Bright, Js.
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Syllabus
Pursuant to state regulation (
The plaintiffs, wrecker services licensed in Connecticut, appealed to the trial court from the decision of a Department of Motor Vehicles hearing officer, who determined that the plaintiffs had overcharged the owner of a tractor trailer for certain nonconsensual towing services, and who ordered that the plaintiffs pay restitution and imposed a civil penalty. The plaintiffs were summoned by the state police to provide towing services after the tractor trailer, which was insured by the defendant insurance company S Co., became disabled during a highway accident. The plaintiffs used special equipment to remove the tractor trailer from the highway and to tow it to the plaintiffs’ storage facilities. The plaintiffs sent S Co. an itemized invoice for the work performed, including fees associated with the use of the special equipment, which S Co. paid under protest. S Co. subsequently filed a complaint with the named defendant, the Commissioner of Motor Vehicles, claiming, inter alia, that the plaintiffs’ charges were unfair and unreasonable. In determining that the plaintiffs overcharged for their services, the hearing officer concluded that the plaintiffs had established their own rate schedule for nonconsensual towing services that was based on the special equipment they used, rather than on the hourly rate for labor set by the commissioner. The hearing officer ultimately disallowed most of the plaintiffs’ charges, including any charge that was deemed to be an equipment charge and not an hourly labor charge. After the trial court rendered judgment dismissing the plaintiffs’ administrative appeal, the plaintiffs appealed to the Appellate Court, which affirmed the trial court‘s judgment. On the granting of certification, the plaintiffs appealed to this court. Held:
The Appellate Court incorrectly determined that fees for exceptional services, as contemplated by
Contrary to the Appellate Court‘s conclusion, the relevant text of
This court reasoned that, if it were to construe
Moreover, there was no merit to the commissioner‘s claim that wrecker services could recoup the costs of special equipment through the hourly rate for nonconsensual towing determined by the commissioner, as the regulations exclude exceptional services from the definition of “hourly rate,” and, in any event, if the commissioner were to base the hourly rate for all nonconsensual towing, at least in part, on the cost to procure and maintain the special equipment needed for exceptional services, vehicle owners whose tow does not require exceptional services would effectively subsidize the cost of towing for those owners who do require exceptional services.
Accordingly, this court reversed in part the Appellate Court‘s judgment and remanded the case for further proceedings before a Department of Motor Vehicles hearing officer concerning S Co.‘s challenge to the plaintiffs’ charges in light of this court‘s interpretation of
Argued May 15—officially released September 23, 2025
Procedural History
Appeal from the decision of the named defendant ordering the plaintiffs to pay to the defendant Sentry Select Insurance Company restitution for alleged overcharges for towing and recovery services, and to pay a civil penalty to the Department of Motor Vehicles, brought to the Superior Court in the judicial district of New Britain, where the action was withdrawn as to the defendant Sentry Select Insurance Company; thereafter, the case was tried to the court, Hon. Henry S. Cohn, judge trial referee; subsequently, the court remanded the case to the named defendant for further findings; thereafter, a department hearing officer issued a supplemental decision; subsequently, the court rendered judgment dismissing the appeal, from which the plaintiffs appealed to the Appellate Court, Moll, Cradle and Westbrook, Js., which affirmed the trial court‘s judgment, and the plaintiffs, on the granting of certification, appealed to this court. Reversed in part; further proceedings.
Jesse A. Langer, with whom, on the brief, were Jeffrey D. Bausch and Ryan P. Coleman, for the appellants (plaintiffs).
Drew S. Graham, assistant attorney general, with whom, on the brief, was William Tong, attorney general, for the appellee (named defendant).
Opinion
MCDONALD, J. In this certified appeal, we consider whether the Appellate Court correctly concluded that
In the afternoon of December 4, 2014, the Connecticut State Police summoned the plaintiffs, which are licensed wrecker services; see
Given the state police‘s characterization of the accident, the plaintiffs dispatched a “1075 rotator” truck to the scene, which is a seventy-five ton, “specialized piece of equipment . . . .” The state police regulations define a “rotator” truck as “a wrecker/recovery vehicle consisting of a rotating superstructure (center post or turn-table), adjusting boom, operating machinery, and one or more operator‘s stations mounted on a frame attached to a truck chassis. Such vehicle has the ability to lift, lower and swing loads at various radii ....”
When the plaintiffs arrived at the accident scene at approximately 2:30 p.m., their employees “quickly swept and removed all [of] the large parts that had come off from the tractor and trailer and placed [them] into large disposal bags to clea[r] the roadway. When all [of the] debris was picked up, the [rotator truck] was ... set up on an [Occupational Safety and Health Administration (OSHA)] certified platform ....” The plaintiffs utilized the rotator truck “to create a pick and rotate recovery method” that would not cause any additional lane closures or further damage to the guardrail. After the tractor and trailer were removed from the highway, they were transported by the plaintiffs to a nearby private parking lot.3 Additional equipment arrived at that secondary scene, where the plaintiffs continued to work on the wreckage. Following additional preparations, the wreckage was transported to the plaintiffs’ facility at approximately 8 p.m., almost six hours after the plaintiffs were first dispatched. In a narrative that accompanied their invoice, the plaintiffs reported that, the next day, they used the rotator truck “to remove the damaged tractor from the low-bed trailer and [to] secure it at the storage facility. This process took approximately [two and one-half] to three hours.”
The plaintiffs sent Sentry an itemized invoice for the work performed, and, after some back-and-forth, Sentry paid $29,339.30 “under duress” so that the plaintiffs would release the tractor and trailer.4 The invoice charged $8000 for the rotator truck, which was comprised of two
Sentry filed a complaint with the named defendant, the Commissioner of Motor Vehicles, disputing various charges and arguing that the invoice “was ... not fair or reasonable” because, among other things, “[t]here was no justifiable reason” to tow the wreckage to a private parking lot before transporting it to the plaintiffs’ facility. Sentry also took issue with the two $1750 set up charges for the rotator truck, as well as the $750 hourly rate, which it contended was well above the $325 hourly rate that was allowed under the regulations. Furthermore, Sentry protested the $750 hourly rate for the emergency response vehicle, for which, it asserted, it should have been billed at not more than $200 per hour. It also alleged that the charges for a scene supervisor and an OSHA supervisor were improper. Additionally, Sentry argued that the other equipment used was “[u]necessary” and that other charges in the invoice were “not allowed by Connecticut regulations.”6 The plaintiffs disputed Sentry‘s allegations, and a hearing was held before a hearing officer.
After hearing testimony from Modzelewski and an analyst with the commissioner‘s consumer complaint center, the hearing officer concluded that the plaintiffs had engaged in nonconsensual towing services under
On the basis of Modzelewski‘s testimony, the hearing officer found that, “[r]ather than using and charging the approved rates, the [plaintiffs had] established, posted and used [their] own rate schedule based on equipment.” The hearing officer concluded that the plaintiffs had, therefore, “charged fees in excess of the maximum rates and charges permissible . . . .” Of the $29,339.30 paid by Sentry, the plaintiffs were ordered to pay $24,687.22 in restitution, as well as a $4000 civil penalty.
The plaintiffs appealed from the hearing officer‘s decision to the Superior Court; see
On remand, the hearing officer explained that he had disallowed certain charges in the plaintiffs’ invoice, such as “[w]hen [it] listed a charge that was found to be an equipment charge and not an hourly labor charge . . . .” The hearing officer described that, “[w]hen the [plaintiffs‘] invoice listed a charge that was found to be consistent with an hourly labor charge, such as [for] the scene supervisor, it was an allowed charge. When the [plaintiffs‘] invoice listed a charge that was found to be an equipment charge and not an hourly labor charge, such as [for] the [rotator truck], it was disallowed. When the [plaintiffs‘] invoice listed a charge that was neither an hourly labor charge nor an equipment charge, such as the 10 percent administration billing fee, it was disallowed. . . . The core issue remains [that] charges must be at hourly labor rates.”
As a result, the hearing officer determined that the plaintiffs could charge $1063.50 and $1382.55 for four hours of work by the scene supervisor and for operation of the rotator truck, respectively, but he disallowed the remaining charges because they were not calculated based on an approved hourly labor rate, because they
The plaintiffs appealed to the Appellate Court, claiming, among other things, that the trial court improperly had interpreted
This court granted the plaintiffs’ petition for certification to appeal, limited to whether the Appellate Court “correctly conclude[d] that the rates for ‘exceptional services’ pursuant to
The commissioner, in contrast, urges us to affirm the Appellate Court‘s judgment and argues that “[t]he plain and unambiguous” meaning of
Our review is governed by the Uniform Administrative Procedure Act,
Here, we invoke a de novo standard of review because the commissioner‘s interpretation of
We begin with the text of
To resolve the issue on appeal, we must determine the method by which a wrecker service may assess additional fees for exceptional services that are reasonable and necessary for a nonconsensual tow.10 The commissioner argues that the requirement to provide an “itemized [list] in accordance with the hourly charge for labor posted by the licensed towing service, as required by the provisions of
The Appellate Court concluded that
Although the Appellate Court plausibly concluded that the second sentence of
The second sentence in
We conclude that the more reasonable reading of the second sentence of
“The hourly charge for labor” under
Consequently,
The fact that all wrecker services already must display the charges and conditions sign further supports the reasonableness of this interpretation. The charges and conditions sign must be displayed by “[e]ach motor vehicle repair shop“;
Our interpretation is further supported by consideration of the related regulatory scheme for the state police‘s rotation list for nonconsensual towing. See
In order to be included on the rotation list, wrecker services must apply to the
The plaintiffs argue that “[m]any of [the required support items] relate to the ‘special equipment ’ ” that is necessary for performing exceptional services, and they specifically point to the state police‘s requirement that a wrecker service have a “rotator/crane” and “air compressor[s] . . . .” (Emphasis omitted.) Compare
We find the plaintiffs’ reasoning persuasive. In light of the fact that wrecker services are required to purchase costly and specialized equipment to enable them to perform exceptional services for purposes of being included on the state police‘s rotation list,16 it would be well-nigh
Moreover, the commissioner‘s argument that a wrecker service can recoup its capital costs for special equipment through the income stream that is provided by the hourly rate is belied by the related regulations. As the commissioner‘s counsel observed at oral argument before this court, the regulations allow a wrecker service to assess only two types of charges in connection with a nonconsensual tow. The first type is based on the hourly rate, which is set by the commissioner; see
Consequently, there are two reasons why we find untenable the commissioner‘s claim that a wrecker service can recoup, through the hourly rate alone, the costs associated with exceptional services, including the cost to purchase and maintain the special equipment used therefor. First, in defining the “hourly rate,” the regulations expressly state that “[s]uch rate shall not include exceptional services . . . .”
The judgment of the Appellate Court is reversed except with respect to the Appellate Court‘s decision to uphold the denial of the plaintiffs’ request to dismiss Sentry‘s complaint against the plaintiff Modzelewski‘s Towing & Recovery, Inc., and the case is remanded to that court with direction to reverse the trial court‘s judgment dismissing the plaintiffs’ administrative appeal and to remand the case to the trial court with direction to reverse the hearing officer‘s decision, to vacate the order of restitution and imposition of a civil penalty, and to remand the case to the hearing officer for a new hearing on Sentry‘s challenge to the fees charged in the plaintiffs’ invoice for the December 4, 2014 tow and for further proceedings in accordance with this opinion.
In this opinion the other justices concurred.
