New York Senate Bill S09787

New York 2025-2026 Regular Session

• Introduced: 4/6/26
• Refer: 4/6/26

Caption

Authorizes a lien against personal and real property of the owner of a commercial towing company for illegal and improper practices; creates personal liability for members of an LLC and certain corporate shareholders.

Impact

The proposed changes will amend not only the lien law but also aspects of the general business law and the administrative code of the city of New York. Notably, it would render the top ten shareholders of non-publicly traded corporations personally liable for judgments arising from improper towing practices. This constitutes a significant shift in the legal landscape for commercial towing companies by holding individuals in positions of financial power accountable for the actions of their business, promoting ethical conduct within the industry.

Summary

Bill S09787 introduces significant amendments to existing lien laws in New York, specifically targeting commercial towing companies and their practices. The bill authorizes the creation of liens against the personal and real property of towing company owners if they engage in illegal or improper towing practices. This framework is meant to enhance accountability and provide better recourse for affected vehicle owners, ensuring that they are not charged excessively or subjected to improper towing methods. The bill also stipulates specific procedures for establishing and enforcing such liens, invoking uniform procedures across various court jurisdictions.

Contention

While proponents of the bill argue that it protects consumers and ensures fair business practices among towing companies, there may be concerns surrounding its implications for business operations. Opponents might claim that it places an undue burden on towing companies, potentially leading to higher costs for consumers as businesses adjust to new liability risks. Critics may also argue the bill's expansive definitions of improper practices could be subject to interpretation, leading to litigation over what constitutes illegal towing, which might burden the courts further.

Additional_points

Lastly, the bill envisions a structure where no lien can be enforced for more than one year unless an extension is appropriately filed, aiming to balance the rights of consumers with those of towing companies. This brings a level of fairness in enforcing liens while maintaining the interests of motor vehicle owners who may face issues due to improper towing.