Santander Consumer USA, Inc. v. The City of Yonkers

CourtDistrict Court, S.D. New York
DecidedSeptember 12, 2022
Docket7:20-cv-04553
StatusUnknown

This text of Santander Consumer USA, Inc. v. The City of Yonkers (Santander Consumer USA, Inc. v. The City of Yonkers) 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, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

SANTANDER CONSUMER USA, INC.,

Plaintiff, No. 20-CV-4553 (KMK)

v. OPINION & ORDER

THE CITY OF YONKERS et al.,

Defendants.

Appearances:

Sarah Bouskila, Esq. Stroock & Stroock & Lavan LLP New York, NY Counsel for Plaintiff

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

Andrew J. Campanelli, Esq. Campanelli & Associates P.C. Counsel for Intervenor Plaintiff

Dennis E. A. Lynch, Esq. Blanchard & Wilson, LLP 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 Harold Wuestenhoefer KENNETH M. KARAS, District Judge:

Plaintiff Santander Consumer USA, Inc. (“Santander” or “Plaintiff”) and Intervenor Plaintiff Kate A. Mensah (“Mensah” or “Intervenor”) bring this Action under 42 U.S.C. § 1983 against Defendants The City of Yonkers (hereinafter “Yonkers”), A.P.O.W. Towing, LLC. (“APOW”) and Harold Wuestenhoefer (“Wuestenhoefer”; together with APOW, the “APOW Defendants”; and collectively, “Defendants”), alleging constitutional and state law violations in connection with the seizure of Plaintiff and Intervenor’s car. (See generally Compl. (Dkt. No. 1).) Before the Court are: (1) Santander’s Motion for Attorney’s Fees, 2) Yonkers’ Motion for Summary Judgment, and 3) APOW’s Motion for Summary Judgment, and 4) Mensah’s Motion for Partial Summary Judgment. (See Dkt. Nos. 89, 95, 103, 106.) For the reasons discussed below, the Motion for Attorney’s Fees is granted with modifications, Yonkers’ Motion for Summary Judgment is denied, APOW’s Motion for Summary Judgment is denied in part and granted in part, and Mensah’s Motion for Summary Judgment is granted. I. Background

A. Factual Background The following facts are taken from Mensah’s Statement Pursuant to Local Rule 56.1 (Mensah’s Rule 56.1 Statement in Supp. of Mot. for Summ. J. (“Mensah’s 56.1”) (Dkt. No. 92)), Yonkers’ Statement Pursuant to Local Rule 56.1 (Yonkers’ Rule 56.1 Statement in Supp. of Mot. for Summ. J (“Yonkers’ 56.1”) (Dkt. No. 100)), the APOW Defendants’ Statement Pursuant to Local Rule 56.1 (APOW’s Rule 56.1 Statement in Supp. of Mot. for Summ. J. (“APOW’s 56.1”) (Dkt. No. 105)), the APOW Defs.’ Counter Statement Pursuant to Local Rule 56.1 (APOW’s Rule 56.1 Counter Statement in Supp. of Mot. for Summ. J. (“APOW’s Counter 56.1”) (Dkt. No. 118)), Mensah’s Counter Statement Pursuant to Local Rule 56.1 (Mensah’s Rule 56.1 Counter

2 Statement in Supp. of Mot. for Summ. J. (“Mensah’s Counter 56.1 - APOW”) (Dkt. No. 123)), Mensah’s Counter Statement Pursuant to Local Rule 56.1 (Mensah’s Rule 56.1 Counter Statement in Supp. of Mot. for Summ. J. (“Mensah’s Counter 56.1 - Yonkers”) (Dkt. No. 125)), Yonkers’ Counter Statement Pursuant to Local Rule 56.1 (Yonkers’ Rule 56.1 Counter

Statement in Supp. of Mot. for Summ. J. (“Yonkers’ Counter 56.1”) (Dkt. No. 129)), and the admissible evidence submitted by the Parties. On July 16, 2018, Mensah entered into a financing agreement with Santander, whereby Santander financed the purchase of a 2017 Nissan Pathfinder (the “Vehicle”). (Mensah’s 56.1 ¶ 50; APOW’s 56.1 ¶ 1.) Under the terms of the financing agreement, Mensah agreed to pay Santander in monthly installments of $655 over a six-year period. (APOW’s 56.1 ¶ 1.) Santander held title to the Vehicle and the first duly perfected lien in the Vehicle, and Mensah had sole, undisputed right of continued use and possession of the Vehicle. (Mensah’s 56.1 ¶¶ 51, 53.) Mensah registered the Vehicle with the New York State Department of Motor Vehicles. (Id. ¶ 52.) At the time that Mensah entered into the financing agreement, she resided at 180

Hawthorne Avenue, Apartment 2A, Yonkers, New York. (APOW’s 56.1 ¶ 2.) However, the Vehicle was registered to Mensah at 180 Hawthorne Avenue, Apartment 4E, Yonkers, New York, where Mensah had previously resided. (APOW’s 56.1 ¶¶ 2–7.) Mensah continued to receive mail addressed to Apartment 4E. (APOW’s 56.1 ¶ 2.) APOW was a contract vendor with Yonkers, pursuant to which APOW towed, stored, and disposed of motor vehicles at the request of Yonkers. (APOW’s 56.1 ¶ 10; Mensah’s 56.1 ¶ 24.) According to its contract, APOW could not release a vehicle to its owner until Yonkers issued a release indicating that payment—i.e., for unpaid tickets, as well as the cost of towing

3 and storing the car—was made. (APOW’s 56.1 ¶ 10; see also Mensah’s 56.1 ¶ 30.) APOW must store vehicles for at least 60 days before disposal. (APOW’s 56.1 ¶ 11.) On January 24, 2020, APOW towed and impounded the Vehicle, which was parked on the street outside Mensah’s apartment, at Yonkers’ request. (APOW’s 56.1 ¶ 8.) According to

Defendants, the Vehicle was towed because it had an expired registration and because it had outstanding parking violations. (Yonkers’ 56.1 ¶¶ 2–7; APOW’s 56.1 ¶¶ 8–9; Mensah’s 56.1 ¶ 62.) According to Mensah, she received no written notice regarding the seizure of the Vehicle. (Mensah’s 56.1 ¶ 62.) After the Vehicle was impounded, Mensah went to the Yonkers Parking Violations Bureau (“PVB”) and requested a hearing before an independent Administrative Law Judge (“ALJ”). (Yonkers’ 56.1 ¶ 8.) That hearing was held on January 27, 2020 in front of ALJ Joseph Ruggiero. (Mensah’s 56.1 ¶ 65.) At the hearing, the ALJ found in favor of Mensah on some of the unpaid parking tickets but found against her on others. (Id. ¶ 66.) ALJ Ruggiero found that Mensah owed a balance of $1367.63 to Yonkers. (Id. ¶ 67; Yonkers’ 56.1 ¶ 10.)

When Mensah informed the ALJ that she could not pay the entire balance at once, ALJ Ruggiero permitted Mensah to pay in installments. (Yonkers’ 56.1 ¶ 11.) By March 20, 2020, Mensah paid the full balance to Yonkers. (Id. ¶ 12.) When she had made her final payment, Yonkers provided Mensah with a release so that she could obtain the Vehicle from APOW. (Id. ¶ 13.) According to Yonkers and APOW, Mensah signed an acknowledgement from the PVB stating that until she re-registered the Vehicle with the Department of Motor Vehicles, the Vehicle could not be operated on any public street. (Id.; APOW 56.1 ¶ 22.) Mensah denies that she signed such a statement. (APOW 56.1 ¶ 23.)

4 Before the Vehicle was towed, Mensah had defaulted on her loan payments to Santander. (APOW 56.1 ¶ 13; Yonkers 56.1 ¶ 43.) Because of this, when Mensah went to APOW on March 20, 2020 to retrieve the vehicle, she was told that Santander had taken the car. (APOW’s 56.1 ¶ 26(b).) Santander repossessed the Vehicle—which was still being held by APOW—on October

23, 2020. (Mensah’s 56.1 ¶ 98; see also Yonkers’ 56.1 ¶ 16.)1 On November 25, 2020, Santander sold the Vehicle for $15,800. (Mensah’s 56.1 ¶ 100.) Mensah alleges that she was deprived of the Vehicle from January 24, 2020 through October 23, 2020, during which time she and her children were “forced to use public transportation during a global pandemic.” (Id. ¶ 99.) B. Procedural History Santander filed its Complaint on June 15, 2020, alleging both constitutional and state law violations in connection with Defendants’ seizure of the Vehicle. (Dkt. No. 1.) Yonkers filed an Answer on July 7, 2020. (Dkt. No. 12.) The APOW Defendants filed an Answer and Cross- Claim against Yonkers on July 9, 2020. (Dkt. No. 17.) Yonkers filed an Amended Answer on

July 17, 2020. (Dkt. No. 19.) The Court adopted a Case Management Order on October 6, 2020. (Dkt. No. 25.) On October 15, 2020, the case was referred to Magistrate Judge Paul E. Davison (“Magistrate Judge Davison”). (Dkt. No. 26.) On April 19, 2021, Mensah filed a Motion to Intervene, (Dkt. No. 53), which Magistrate Judge Davison granted on May 17, 2021, (Dkt. No.

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