Santander Consumer USA, Inc. v. The City of Yonkers, A.P.O.W. Towing, LLC, and Yonkers Towing & Recovery LLC

CourtDistrict Court, S.D. New York
DecidedSeptember 18, 2025
Docket7:22-cv-08870
StatusUnknown

This text of Santander Consumer USA, Inc. v. The City of Yonkers, A.P.O.W. Towing, LLC, and Yonkers Towing & Recovery LLC (Santander Consumer USA, Inc. v. The City of Yonkers, A.P.O.W. Towing, LLC, and Yonkers Towing & Recovery LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Santander Consumer USA, Inc. v. The City of Yonkers, A.P.O.W. Towing, LLC, and Yonkers Towing & Recovery LLC, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

SANTANDER CONSUMER USA, INC.,

Plaintiff,

v. No. 22-CV-8870 (KMK)

THE CITY OF YONKERS, A.P.O.W. ORDER & OPINION TOWING, LLC, and YONKERS TOWING & RECOVERY LLC,

Defendants.

Appearances:

Nicholas Andrew Duston, Esq. Norris McLaughlin, PA New York, NY Counsel for Plaintiff

Darius Patrick Chafizadeh, Esq. Jared Andrew Kasschau, Esq. Jessica Molinares Kalpakis, Esq. Harris Beach Murtha Cullina PLLC White Plains, NY Counsel for Defendant The City of Yonkers

Paul William Meyer, Esq. Law Office of Paul W. Meyer, Jr. Yonkers, NY Counsel for Defendants A.P.O.W. Towing, LLC, and Yonkers Towing & Recovery LLC

KENNETH M. KARAS, United States District Judge: Santander Consumer USA, Inc. (“Santander” or “Plaintiff”) brings this Action under 42 U.S.C. § 1983 (“Section 1983”) against The City of Yonkers (“Yonkers”), and A.P.O.W. Towing, LLC, and Yonkers Towing & Recovery LLC (together, “YTR”) (collectively, “Defendants”). (See generally Am. Compl. (Dkt. No. 59).) Before the Court is Santander’s Motion for Damages and Attorneys’ Fees (the “Motion”). (See Not. of Mot. (Dkt. No. 109).) For the reasons discussed below, the Motion is granted in part. I. Background The Court assumes the Parties’ familiarity with the Action’s factual and procedural

background, as laid out in its Opinion on Santander’s Motion for Partial Summary Judgment. See Santander Consumer USA, Inc. v. City of Yonkers, No. 22-CV-8870, 2024 WL 4817649, at *1–3 (S.D.N.Y. Nov. 18, 2024). On November 18, 2024, the Court granted partial summary judgment for Santander. See generally id. On November 25, 2024, the Parties submitted a joint letter setting the value of the vehicle at issue (the “Vehicle”) at $22,000. (Dkt. No. 105.) On December 6, 2024, the Court set a briefing schedule. (Dkt. No. 106.) On January 10, 2025, Santander filed the instant Motion. (See Not. of Mot.; Pl’s Mem. in Supp. (“Pl’s Mem.”) (Dkt. No. 110).) On January 24, 2025, YTR and Yonkers filed their Opposition papers. (See YTR Decl. in Opp. (“YTR Decl.”) (Dkt. No. 113); Yonkers Mem. in

Opp. (“Yonkers Opp.”) (Dkt. No. 114).) On January 31, 2025, Santander replied. (See Pl’s Reply Mem. in Supp. (“Pl’s Reply”) (Dkt. No. 115).) II. Discussion Santander seeks compensatory damages, attorneys’ fees, and costs.1 The Court addresses 0F each in turn. A. Compensatory Damages and Prejudgment Interest Santander argues that it is owed compensatory damages equal to the Vehicle’s stipulated value, $22,000, and prejudgment interest on the same from the date it was deprived of the

1 Yonkers does not dispute the claimed $865.80 in costs. (Yonkers Opp. 1 n.1.) Vehicle, $2,421.22, for a total of $24,421.22. (Pl’s Mem. 9–10.) Yonkers only disputes the prejudgment interest. (Yonkers Opp. 22–23.) According to the Second Circuit, [i]n a suit to enforce a federal right, the question of whether or not to award prejudgment interest is ordinarily left to the discretion of the district court, which is to take into consideration[:] (i) the need to fully compensate the wronged party for actual damages suffered, (ii) considerations of fairness and the relative equities of the award, (iii) the remedial purpose of the statute involved, and/or (iv) such other general principles as are deemed relevant by the court. Stanbro v. Palou, No. 19-CV-10857, 2023 WL 2058610, at *2 (S.D.N.Y. Feb. 16, 2023) (quoting Gierlinger v. Gleason, 160 F.3d 858, 873 (2d Cir. 1998)). For Santander to receive full compensation for its loss and in keeping with the remedial purpose of Section 1983, the Court finds that it should receive prejudgment interest. See Jeanty v. City of New York, No. 18-CV-5920, 2021 WL 276553, at *8 (S.D.N.Y. Jan. 27, 2021) (noting that an award of prejudgment interest is in keeping with Section 1983’s remedial scheme “to fully compensate individuals for harm suffered as a result of a constitutional violation[.]” (quoting Rao v. N.Y.C. Health & Hosps. Corp., 882 F. Supp. 321, 326 (S.D.N.Y. 1995))). The Court already has found that there was an unlawful taking of Santander’s property interest in the Vehicle in 2021. Santander, 2024 WL 4817649, at *12–13. Prejudgment interest from the time of the Vehicle’s taking serves to fully compensate Santander for its inability to utilize its property. Cf. One Barberry Real Est. Holding, LLC v. Maturo, No. 17-CV-985, 2024 WL 1831165, at *3 (D. Conn. Apr. 26, 2024) (finding that prejudgment interest was warranted “because the entire damages award was discounted to its 2017 value,” meaning that “[p]laintiffs ha[d] not yet been compensated for the ‘delay in the receipt of relief’ for the time period between 2017 and 2023” (quoting Rao, 882 F. Supp. at 326 (S.D.N.Y. 1995))). Yonkers argues that the Parties stipulated to a total value of $22,000 and so should receive only that amount. (Yonkers Opp. 23.) But Santander has the better argument here—the stipulation provides no language indicating that the $22,000 constitutes agreed-upon total compensation or that it forecloses an award of prejudgment interest. (See Pl’s Reply 11; Dkt. No. 105.) Considerations of fairness and relative equities also weigh in favor of granting

prejudgment interest. Defendants “incurred [an] ‘obligation to make [Santander] whole the instant that the injury occur[red,]’” so Santander “should not be penalized for the fact that [it] had to ‘wait until after litigation has run its course before realizing a judgment.’” One Barberry Real Est. Holding, 2024 WL 1831165, at *3 (quoting McCrann v. U.S. Lines, Inc., 803 F.2d 771, 773 (2d Cir. 1986)). Additionally, the interest here is not “unduly burdensome and punitive” to Defendants. Cf. Stanbro, 2023 WL 2058610, at *2 (finding that plaintiff was not entitled to prejudgment interest on top of an award that was found by a jury to reasonably compensate plaintiff’s loss). The Court has considered Yonkers’ argument with respect to YTR’s causing “significant delay,” (Yonkers Opp. 23), but does not find “that [any] [P]arty should be penalized for any delay in litigation and therefore delay in the receipt of judgment.” One Barberry Real

Est. Holding, 2024 WL 1831165, at *5 n.7. Further, Yonkers provides no caselaw in support of its argument that YTR’s alleged delay should preclude any award of prejudgment interest. (See Yonkers Opp. 23.) This Action is only two-and-a-half years old, and the Court has seen no evidence of delay on the part of any Party, let alone unreasonable delay. See Am. Tech. Ceramics Corp. v. Presidio Components, Inc., 490 F. Supp. 3d 593, 635 (E.D.N.Y. 2020) (finding no undue delay that precluded prejudgment interest and noting that “the withholding of prejudgment interest based on delay is the exception, not the rule” (quoting Lummus Indus., Inc. v. D.M. & E. Corp., 862 F.2d 267, 275 (Fed. Cir. 1988))). Finally, Santander calculates prejudgment interest using the “average interest rate,” which it derives from the annual rate of return on Treasury bills for 2021, 2022, and 2023. (See Pl’s Mem. 10.) Other district courts regularly accept this type of calculation in determining prejudgment interest. See, e.g., Sanderson v. Leg Apparel LLC, No. 19-CV-8423, 2024 WL

898654, at *5 (S.D.N.Y. Mar. 1, 2024) (“[The prejudgment interest] rate is ‘most commonly based on the average rate of return on one-year Treasury bills (‘T-bills’) for the relevant time period.’” (quoting Thomas v. iStar Fin., Inc., 508 F. Supp. 2d 252, 264 (S.D.N.Y. 2007))); Gem Fin. Serv., Inc. v. City of New York, No.

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Santander Consumer USA, Inc. v. The City of Yonkers, A.P.O.W. Towing, LLC, and Yonkers Towing & Recovery LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/santander-consumer-usa-inc-v-the-city-of-yonkers-apow-towing-llc-nysd-2025.