The Justice Department has announced that Morningstar Storage, which manages and operates a network of self-storage facilities in the southeast area of the United States, has agreed to pay $130,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain court orders before auctioning the contents of at least three storage units owned by active-duty servicemembers.
According to the complaint, an Air Force Staff Sergeant stationed at MacDill Air Force Base rented a unit at a storage facility in Tampa, Florida. On the storage agreement, the Staff Sergeant indicated that she was in active military service, provided contact information for her military unit and authorised rent payments to be made automatically.
Shortly thereafter, before being deployed overseas to Jordan, she stored nearly all of her household goods at the Tampa facility, including her military awards and coins, and her children’s toys and keepsakes.
While the Staff Sergeant was still deployed to Jordan, Morningstar acquired the Tampa facility, stopped her automatic payments and auctioned all the contents of her unit for $390.
“We all know that servicemembers endure many hardships and make great sacrifices as a result of their service to the nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our servicemembers should never have to worry that their property, including their most prized keepsakes and personal treasures, will be sold out from under them while they are on duty. The Justice Department will continue standing up for servicemembers to ensure basic respect for their property, their rights and their dignity.”
“The U.S. Attorney’s Office for the Middle District of Florida is deeply committed to protecting the civil rights of our Nation’s servicemembers,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The brave individuals who selflessly sacrifice to serve our country deserve the respect and peace of mind of knowing that what they leave behind during their service will be treated with the utmost care. Today’s consent decree reminds us that the companies who take on this responsibility do not always exercise the care that our servicemembers are entitled to under the SCRA, but the department remains committed to ensuring companies like Morningstar follow their obligations under the law.”
The SCRA provides financial and housing protections and benefits to military members while they are in military service. One of the SCRA’s protections requires anyone holding a lien on the property of a servicemember to obtain a court order prior to auctioning off, selling or otherwise disposing of that property.
Under the consent order, which the U.S. District Court must still approve for the Middle District of Florida, Morningstar will pay the Air Force Staff Sergeant $80,000 in damages and will pay $5,000 each to two additional servicemembers.
Morningstar has also agreed to pay a $40,000 civil penalty to the United States and must also implement new policies to prevent future violations of the SCRA.
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