Not completing traffic school isn't an offence for which a warrant can issue. I suspect there's more to your story. Get an attorney to help figure it out.
Mr. Feasel is a former prosecutor in San Mateo County (CA) with over 10 years of criminal law experience. Nothing stated on this site shall in anyway be construed as legal advice, or as creating any attorney/client relationship. If you would like to hire Mr. Feasel to further investigate your situation, feel free to contact him thru this site.
You need to discuss this with a competent criminal defense attorney ASAP. I assume you have written proof that you complied with all the conditions of traffic school ( paid receipt and attendance forms and certificate of completion, etc.). Get a lawyer to review the case file records and traffic school records. I'd concern myself with defending the case rather than suing someone. Deal with the urgent issue first.
I am trying to give you a general answer to your question. We do not have an attorney-client relationship by this response on the avvo website. I have not been retained to represent you. I am licensed to practice law in Kentucky and in federal court in this state and the Southern District of Indiana. You need to seek legal advice from an attorney licensed to practice in your area..
Something is missing from your story. The police generally do not actively pursue warrants for failing to complete traffic school. 99% of the time, the person is dealing with the police for something else (pulled over for some reason and the police run a check). Furthermore, I haven't seen a case where someone is then arrested for not completing traffic school unless they are being particularly difficult with the police.
If the story is as you say it, it would seem that merely showing the court proof of completion of the traffic school would correct your problem.
As far as suing your traffic school, I would consult with a civil attorney in your area. It might be hard to prove that the school messed something up.
Both Mr. Feasel and Mr. Mascagni are correct. It is odd that you were arrested for not completing driving school. The remedy is going to court and showing proof of completion. The traffic school may offer to refund your fees if indeed this was the reason you were picked up. I advise you to get counsel to review both matters on a free consultation basis.