NYS DMV New York State Motor Vehicle, Vehicle wrongfully seized. Albany, New York

On March 14th one of my tenants was driving my converted school bus to me filled with all of my equipment.  He was pulled over by NYS Police. The officer said that using a automatic plate scanner he found my registration to be suspend.  He continues to have my vehicle towed and impounded.  This morning I notified Progressive Insurance and my insurance agent of the problem.  Upon more investigation I found it to be a problem caused by NYS DMV's computer system or data entry. 

My insurance was in fact in force and in good standing.  In fact the date they claim my suspention started is the very same date I renwed my registraion IN PERSON at DMV ( I have the canceled check).  Even with all of this proof DMV proceeds to tell me it will take at least 72 hours for the correction to show in their system so I can get my plates back!!!!.  How can they legaly get away with this?  How do I sue NYS for towing, impounding fees, rental of a compairable vehicle, ect ect???