Sarah Mirando  |  July 10, 2013

Category: Legal News

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New York Storage Companies Under Fire for Improper Business Practices

By Amanda Antell

 

self storage lien auctionThe self storage industry is a standard business practice and way of life for many in the United States, with 46,000 established units reported in 2009. However, many tenants are suing these storage companies for imposing unethical charges that include hidden fees, early termination fees, overcharging from late fees, and lost and damaged property.

In the United States, self-storage facilities may legally auction a renter’s property in storage auctions, also known as lien sales, to empty out non-paying tenants according to their landlord enforcement rights, which are outlined by state or jurisdiction rules. These lien auctions are open to the general public, with most bidders buying for the purpose of reselling the items for a larger profit.

Many landlords practice this illegally by either failing to notify the tenant in a manner that complies with the law, or by forcing the tenant to pay whatever amount is owed to the company under the threat that they will sell the property without the tenant’s notice. Tenants have the legal right to pay their outstanding bill until the moment the auction begins to reclaim their items.

The other major problem some tenants face from storage unit companies is weather damage. Most storage unit companies do not provide coverage for lost, damaged and weather-damaged property. Often times, the tenants are responsible for protecting their property, and do not receive help from the storage unit operator.

An example comes from last year, when several renters came together and sued Manhattan Mini-Storage in Chelsea, New York. These plaintiffs were renting two Manhattan Mini-Storage facilities where they discovered their belongings were ruined by Hurricane Sandy, finding most of their possessions damaged and moldy.

The plaintiffs are suing Manhattan Mini-Storage for not notifying them of their damaged property and for announcing that their property would be disposed of without their permission or proper notification. According to the lawsuit, the company did not tell them about their damaged property until a week after the storm, and even closed early as the storm approached so they could not remove their property.

So now faced with mold and water damage from the items, Manhattan Mini-Storage sent an email to the plaintiffs stating the following: “The continued presence of these items in the building now represents an immediate health and safety threat as well as an obstacle to our ability to completely address and eliminate the hazard. Accordingly, we are now undertaking actions to evacuate the contents of all storage rooms in the basements of these two buildings.”

The plaintiffs said the company may not have been able to reimburse the customers because the flooding “was an act of God,” a clause that is normally not covered by insurance or storage unit policies. However, the company said no one’s belongings were being discarded.

If you believe that you’ve been the victim of a storage unit scam, you have legal options. Please visit the New York Mini Storage Property Seizure Class Action Lawsuit Investigation. There, you can submit your claim for a free legal review and if it qualifies for legal action, a seasoned mini-storage lawyer will contact you for a free, no-obligation consultation. You will be guided through the litigation process at no out-of-pocket expenses or hidden fees. The mini-storage attorneys working this investigation do not get paid until you do.

 

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Updated July 10th, 2013

 

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