Morningstar Storage Settle Alleged Violations

The Justice Department announced today 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 located 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 authorized 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 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 must still be approved by the U.S. District Court 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.

This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.go.