City Suspends Towing Company's Permit Over Bribery Allegations

Nationwide Recovery sued the City of Detroit, alleging a procedural due process violation, but the court ruled the termination was justified.

Published on Feb. 9, 2026

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A towing company, Nationwide Recovery, had its permit suspended by the City of Detroit without a hearing, after the city suspected one of the company's drivers was bribing car-theft gangs for tips on where to find stolen vehicles. Nationwide sued the city, alleging a procedural due process violation, but the court ruled that the termination was justified based on evidence that one of Nationwide's drivers had colluded with criminals, and the company was only entitled to nominal damages.

Why it matters

This case highlights the tension between a company's right to due process and a city's ability to suspend permits when there is evidence of criminal activity. It also raises questions about the oversight and regulation of towing companies, which can be lucrative but also prone to corruption.

The details

The City of Detroit suspended Nationwide Recovery's towing permit after suspecting one of the company's drivers was bribing car-theft gangs for tips on where to find stolen vehicles. Nationwide sued the city, alleging a procedural due process violation for suspending the permit without a hearing. The court ruled that while the city fell short of its obligation to provide due process, Nationwide's conduct - specifically, evidence that one of its drivers colluded with criminals - justified the termination of the permit. As a result, Nationwide was only entitled to nominal damages.

  • In 2021, the City of Detroit suspended Nationwide Recovery's towing permit.
  • Nationwide Recovery sued the city in 2021, alleging a procedural due process violation.
  • After almost five years of litigation, the district court ruled in 2026 that Nationwide Recovery was only entitled to nominal damages.

The players

Nationwide Recovery Inc.

A towing company that had a permit with the City of Detroit to charge for recovering stolen vehicles.

City of Detroit

The city that suspended Nationwide Recovery's towing permit without a hearing, citing suspicions that one of the company's drivers was bribing car-theft gangs.

Christian

A Nationwide Recovery driver who was suspected of colluding with car thieves.

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What’s next

The judge in the case will decide on Tuesday whether or not to allow Nationwide Recovery to appeal the ruling.

The takeaway

This case highlights the importance of oversight and regulation in the towing industry, where companies can potentially profit from criminal activity. It also underscores the need to balance a company's due process rights with a city's ability to suspend permits when there is evidence of wrongdoing.