Wilmington Will Reform Impound Practices to End Lawsuit from Residents

WILMINGTON, Del.—The Institute for Justice (IJ) and the city of Wilmington have reached an agreement that reforms predatory impound practices that were the subject of a 2021 lawsuit. Ameera Shaheed and Earl Dickerson sued after their vehicles were towed and impounded by private companies. These companies operated “cost-free” for the city by keeping the profits off scrapping cars.

“I’m really proud of the work everyone put in and the system we helped create,” said IJ Attorney Will Aronin. “Our goal is to make it so nobody loses their car and we were able to craft a new system that has strong protections to keep that from happening.”

Under the terms of the settlement, Wilmington’s improved system will focus on three things: repeated notice, very liberal and easy payment plans for parking tickets, and convenient hearings. Most importantly, even if someone does have their car towed, they will be able to go get it back without being forced to pay, so long as they either go to the hearing or enter into the easy payment plan. Under this system, Ameera Shaheed and Earl Dickerson would not have lost their cars.

For example, the city repeatedly ticketed Ameera’s legally parked car and then towed it because they issued so many tickets. When Ameera couldn’t pay the full sum, the city let the towing contractor just keep the full value of the car. The lawsuit was headed to trial, but the city worked with IJ and Delaware Counsel John Shaw of Shaw Keller to create this new and improved system that should keep this from happening to anybody else. The city also agreed to compensate both plaintiffs well above what their cars were worth.

“I’m glad that my lawsuit is ending with meaningful change for the people of Wilmington,” said Ameera. “It was hard when Wilmington took my vehicle even though I was parked legally. I wasn’t the only one mistreated but hopefully this will never happen again in our city.”

“A lot of hard work went into developing this new and improved system,” said IJ Senior Attorney Rob Johnson. “We want to thank the city for working alongside us in crafting this improved system.”