Former Owner of Ariz. Towing Company Sues for Defamation

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.