The Chattanooga City Taxi Regulatory Board voted Jan. 8, 2026, to issue a warning to American Tow and Recovery after staff presented evidence that a tow company employee failed to report a nonconsensual tow as required by local ordinance.

The action followed staff testimony that the vehicle owner, Linda Caudle, reported her Hyundai Elantra missing on Sept. 17, 2025, and later learned American Tow had her vehicle. According to the board record, the tow operator did not notify the Chattanooga Police Department or the Henley County 9-1-1 dispatcher within the one-hour window the ordinance requires; a police report was written Oct. 3, 2025. Inspector Moser told the board the company had one prior relevant enforcement matter in April 2023, making this the company's second recorded violation under the same ordinance.

At the hearing, Daniel Ripper, attorney for American Tow and Recovery, acknowledged the driver failed to place the required call. He told the board that the company has terminated the driver involved, released the vehicle to the owner without charge once the mistake was discovered, and retrained remaining staff. Ripper described a new office verification process so the company will immediately check that required notifications have been made rather than waiting for payroll checks to confirm compliance. "The driver has been terminated," Ripper said. "We have reeducated the other drivers. We have taken internal steps to put a redundancy in place to make sure that we verify that the drivers have done what they're supposed to do." (Daniel Ripper, attorney for American Tow and Recovery)

Board members debated appropriate sanctions. Staff explained the ordinance's penalty structure: a first violation can carry up to a 30-day suspension from the city's rotation list; a second violation carries up to a six-month suspension, but the ordinance sets no required minimum penalty. Some members urged a stricter response under a three-strike mindset, while others urged the board to weigh the company's corrective actions.

Ultimately the board voted by voice to issue a warning to American Tow and Recovery for this offense. The board's motion treated the matter as a formal notice and did not impose a suspension. The meeting record shows a voice vote of "Aye" and the clerk announced, "Motion carries." (No roll-call vote count was recorded in the transcript.)

Key facts the board reviewed included: the alleged tow occurred Sept. 17, 2025; a police report was recorded Oct. 3, 2025; the company said the vehicle was released without charge; and the company asserted it has implemented an immediate verification procedure in its office. Inspector Moser stated there had been no other violations in the past 12 months and confirmed the April 2023 matter as the prior related incident.

The board did not impose a suspension at the Jan. 8 meeting. Board members directed staff to monitor compliance and the item may be revisited if further violations are identified.

The board hearing record does not include a court determination affecting this administrative action. The company’s corrective steps and the board’s warning are the latest developments; the board closed the matter after the vote.