By Chris Gerics
Saint John, New Brunswick — April 15, 2016 — A towing company in New Brunswick is taking the province to court over a law obligating towing companies to pay for impounded vehicles on a day-to-day basis.
Loyalist Towing Company, operating in Saint John since the 1970s, has reportedly been paying tens of thousands of dollars to the province for fees racked up from impounded vehicles. With the provincial Motor Vehicles Act, towing companies can re-sell vehicles that are impounded if they are assessed at a value of $500 or less.
The province imposes a lien for fines and other costs on vehicles that are valued over that threshold, and the tow operator can sell the vehicle at a public auction if they aren’t paid after three months. Loyalist Towing has told local media that these vehicle auctions can sometimes take upwards of a year for these vehicles to be sold.