Cases
United States v. BMW Financial Services (D. N.J.)
On February 22, 2018, the United States filed a complaint and entered into a settlement agreement in United States v. BMW Financial Services (D. N.J.), a Servicemembers Civil Relief Act pattern or practice case that alleges failure to refund pre-paid lease amounts to servicemembers who terminated their motor vehicle leases early after receiving military orders. The settlement agreement requires BMW FS to pay $2,165,518.84 to 492 servicemembers and $60,788 to the United States Treasury. The agreement also includes non-monetary relief, including changes in BMW FS’s lease termination policies to ensure that required refunds are provided, and employee training.
United States v. City and County of Honolulu, PM Autoworks Inc, d/b/a All Island Towing (D. Haw.)
On February 15, 2018, the United States filed a complaint and entered into a settlement agreement in United States v. City and County of Honolulu Autoworks Inc, d/b/a All Island Towing (D. Haw.) resolving allegations that Honolulu and its contracted towing company violated the Servicemembers Civil Relief Act. The complaint alleges that Honolulu and All Island Automotive Towing violated the Servicemembers Civil Relief Act by auctioning or otherwise disposing of cars owned by protected servicemembers without first obtaining the required court orders. The settlement agreement requires Honolulu to adopt new SCRA-compliant procedures, compensate three servicemembers a total of $55,857.95 for unlawfully auctioning off their cars and personal effects while they were deployed, establish a $150,000 settlement fund to compensate other servicemembers whose rights may have been violated, and pay a $60,788 civil penalty to the United States.