According to the United States Justice Department, Morningstar Storage, a company that manages and operates a self-storage facility network in the Southeastern part of the country, has agreed to pay $130,000 in fines for violating the Servicemembers Civil Relief Act (SCRA).
Morningstar Storage did not obtain court orders prior to auctioning off the contents of at least three storage units belonging to active-duty service members. The SCRA stipulates that storage unit facilities are not permitted to auction off the personal property of service members without a court order.
The complaint involving Morning Star details how an Air Force sergeant rented a storage unit in Tampa, Florida when stationed at MacDill Air Force Base.When she was deployed to Jordan, she stored all of her belongings in the Tampa unit. She indicated in the lease agreement that she was on active duty and authorized automatic rent payments.
While the sergeant was in Jordan, Morningstar Storage acquired the storage facility where her belongings were stored. Morningstar Storage halted her automatic payments and sold her unit’s content for $390.
The consent order, still pending approval from the U.S. District Court for Florida’s Middle District, expounds that Morningstar will be liable to compensate the aggrieved Air Force member $80,000 in damages. Morningstar will also provide $5,000 each to two other affected service members and has consented to a civil penalty worth $40,000 to the United States. In addition, the company is to implement new rules to prevent future SCRA violations.
Morningstar Storage has a presence in 17 states with more than 250 self-storage projects nationwide and over 15 million square feet of business property.
Companies that acquire other facilities have some rights over the acquisition, but the SCRA provides active duty service members certain protections so they can focus on their duties. Verifying an individual’s active duty status is integral to activating SCRA rights.
SCRACVS can help service members obtain proof of military status as well as help companies like Morningstar Storage in confirming if SCRA protections cover the person they are leasing out to. Click here to sign up at SCRAVS and verify the active duty status.