Towing Issues: Towed an unauthorized vehicle from private parking., brick walls, enclosed space

Question
There are two parking spots in downtown Louisville, Ky behind the building that my restaurant is in.  My coworker and I have always parked there and have never had any problem.  Originally there were 2 signs posted against the wall stating "no parking".  I did not even realized one of the signs was gone until one morning a car that didn't belong to anyone's I knew was parked there.  I was already parked at the spot with the sign still attached. And the one without the sign was empty until the owner of the vehicle parked there. So when my coworker arrived she saw the car, well we were contemplating on what to do.  She tried to drive around the block to look for parking elsewhere, but nothing.  It's downtown, you can't find parking anywhere!! So that's when we decided ok, we'll go around to he neighboring buildings and see who owns the car and ask them to move it.  No luck.  So one of the guys who was helping us that day, calls the tow co. and has her car towed.  Needless to say she eventually came back and was very upset, we told her to call the tow co.  The spot that is in question is very small, it is an enclosed space surrounded by brick walls on 3 sides.   As far as I am concerned there has always been 2 "No Parking" signs.  We didn't even realize they were missing.  But there is evidence that a sign was there on her side.  Today she calls threatening to take us to court because she claims she was justified in parking there because there was no sign indicating that she could not park there.  My argument is that you can clearly see that (1)there was remnant of a sign being there. (2) The spot that I was parked in which was right next to hers had a sign, so why didn't she think that was a no parking spot? (3) Just because there is no sign does that make it free parking? (4) If we're using what we know against each other who's to say she took the sign down herself just to park there and claim that there wasn't a sign? It's her words against ours right?  I'm just wondering if she has a case?

Answer
well, its a classic case of he says, she says...

As to if its a "valid case" that would be up to the judge..

That being said, not every space needs a sign, after all you do not have a speed limit sign every 10 feet...

Now the sign being "torn down, blown down or just plain vandalized" is hard to say. But evidence of the sign does not mean that it is a tow away zone. But then like you said, someone can have removed the sign to just park there.

Now the actual parking spaces, are they "yours" as in included in the rental or purchase of the property. Or do they belong to someone else.  That would be something that needs to be determined. If its not your property then you really need to get with the tow company and get new signs and all the stuff needed to be legal..

As to what she was thinking, well if you find a way to determine that, they  you will be way ahead of everyone else...