In the 2012 case of Dans City Used Cars, Inc., DBA Dans City Auto Body v. Robert Pelkey, the U.S. Supreme Court ruled in favor of Pelkey. The dispute arose when Dan's City towed and auctioned off Pelkey's car without his knowledge while he was hospitalized. When he sued for compensation under New Hampshire consumer protection law, Dan’s City argued that federal transportation laws preempted state regulations on towing companies' disposal of vehicles they had towed but not claimed by their owners. The court disagreed with this argument and held that federal law did not preclude a vehicle owner from seeking damages under state law for wrongful disposal of his vehicle by a towing company after it had been removed from private property at the request of a landlord or other person in lawful possession thereof.

In the dissenting opinion for Dans City Used Cars, Inc., DBA Dans City Auto Body v. Robert Pelkey, Justice Alito argued that the majority's interpretation of federal law was too broad and could potentially interfere with state laws governing towing companies. He contended that Congress did not intend to preempt all state laws related to towing when it passed the Federal Aviation Administration Authorization Act (FAAAA). Instead, he believed that only those state laws directly affecting prices, routes or services were meant to be superseded by federal legislation. By interpreting the FAAAA in such a sweeping manner, Justice Alito warned that states may lose their ability to regulate local businesses effectively and protect consumers from predatory practices.