Hunton & Williams LLP Wins Judgment Against Midtown Towing of Miami, Inc. for Illegally Selling U.S. Coast Guard Member's Stolen Vehicle

Firm Launches Coast Guard Pro-Bono Initiative

MIAMI — January 31, 2013 — Hunton & Williams LLP lawyers representing a U.S. Coast Guard member, pro-bono, secured a judgment for more than $67,000 in favor of their client, whose car was illegally sold by a Miami towing company while he was serving aboard a Coast Guard vessel. Hunton & Williams partner Samuel A. Danon and associate Paulo R. Lima represent Gabriel Padilla who was formerly based at Coast Guard Station Miami Beach and is now stationed near Jacksonville, Fla.

"We are pleased to give back to the men and women in uniform who serve us on a daily basis," said Danon, who heads the firm's global litigation practice. "This outcome is a wonderful start for the Miami office and our new pro-bono initiative with the Coast Guard." Hunton & Williams concluded an agreement with the U.S. Coast Guard Seventh District legal office in August 2012 to provide legal assistance service to Coast Guard active duty personnel in South Florida.

U.S. District Judge Marcia G. Cooke, in Miami, entered the final default judgment on Friday, Jan. 11, 2013, awarding Padilla $17,721.29 in compensatory damages, plus $50,000 in punitive damages. Judge Cooke had earlier adjudicated the defendant, Midtown Towing of Miami, Inc., liable for violation of the federal Service members Civil Relief Act, 50 App. U.S.C. §§ 501, et seq. ("SCRA") and conversion under Florida common law.

Padilla's car, a 2004 Honda Civic, was stolen in March 2011 from outside his home in Miami, then involved in a minor traffic accident hours later. North Miami Police had the car towed by Midtown Towing to the company's lot. Padilla tried unsuccessfully to get his car back, then advised Midtown that he was about to depart on a two-month deployment aboard the cutter to which he was assigned and, therefore, would be unable to claim the car during his absence. When he returned from his deployment, Midtown informed him that it had obtained a storage lien and sold his car — all while Padilla was deployed at sea.

The SCRA is a broad federal statute that extends or temporarily suspends deadlines in judicial and administrative proceedings involving active duty service members. The provision relevant to this suit states that “[a] person holding a lien on the property or effects of a service member may not, during any period of military service of the service member and for 90 days thereafter, foreclose on or enforce [the lien] without a court order granted before foreclosure or enforcement.” 50 U.S.C. § 537(a)(1). Thus, the defendant's sale of Padilla’s car without a court order was a violation of the strict liability statute.

Hunton & Williams filed a two-count complaint on Padilla's behalf on Oct. 15, 2012. When Midtown failed to respond, Padilla quickly moved for a default judgment as to liability, which the Court granted on Nov. 28, 2012. In their submission in support of damages, Padilla's lawyers successfully advocated for a $50,000 punitive damages award, arguing that Midtown sold the car despite knowing that Padilla was an active duty member of the Coast Guard and that he was deployed at sea at the time of the sale. Padilla’s lawyers argued that the award was necessary to achieve the two primary goals of punitive damages: to punish the bad conduct and to deter the defendant and others from engaging in similar conduct in the future. The Court agreed, granting Padilla the full amount of damages requested.

Padilla's counsel will now turn to collecting on the judgment. The case is Padilla v. Midtown Towing of Miami, Inc., No. 12-23739-MGC-WCT.

The representation is part of a Coast Guard pro-bono assistance initiative the firm launched recently to provide legal assistance to service members on select projects. The program was started by the firm's managing partner, Wally Martinez, an auxiliarist with the U.S.C.G. and military notary, who is based out of the firm's New York office.