Ronald Armstead worked for First American Bank as a courier. His duties included making deliveries between the bank’s branches in Washington, D.C. Armstead parked the bank’s station wagon near the entrance of one branch in violation of a sign saying:
“No Parking Rush Hour Zone.” In the rear luggage section of the station wagon were four locked bank dispatch bags, containing checks and other valuable documents. Armstead had received tickets for illegal parking at this spot on five occasions. Shortly after Armstead entered the bank, a tow truck arrived and its operator prepared to tow the station wagon. Transportation Management, Inc., operated the towing service on behalf of the District of Columbia. Armstead ran out to the vehicle and told the tow truck operator that he was prepared to drive the vehicle away immediately.
But the operator drove away with the station wagon in tow. One and one-half hours later, a bank employee paid for the car’s release, but one dispatch bag, containing documents worth $107,000, was missing.
First American sued Transportation Management and the District of Columbia. The defendants sought summary judgment, claiming they could not be liable. Were they correct?