The former owner of an embattled towing company in Mesa, Ariz., is suing an insurance company for defamation and $10 million in damages.
Lee Watkins is refuting a claim that Cactus Towing was one of several Phoenix-area tow companies that defrauded customers over the years.
Watkins’ attorney filed the suit this week against the Alabama-based Infinity Insurance Co. in Maricopa County Superior Court.
The case comes after the Elardo Law Firm in Phoenix filed a lawsuit on behalf of Infinity earlier this month.
The insurance agency alleges several Phoenix-area tow companies and body shops worked together to defraud people whose vehicles were towed by taking cars to preferred body shops and tacking on excessive and unnecessary fees — such as $250 in administrative fees for tows and $95 to “re-hook” a car.
Cactus Towing was sold last year to All-City Towing, which was also named in the suit.
Watkins is under investigation by the Maricopa County Sheriff’s Office for allegations similar to those detailed in Infinity’s lawsuit.
Was this article valuable?
Here are more articles you may enjoy.