FLORIDA — A self-storage company has agreed to pay $130,000 to settle allegations that it violated the Servicemembers Civil Relief Act (SCRA) by auctioning the belongings of active-duty servicemembers without obtaining court orders.
According to the U.S. Department of Justice (DOJ), Morningstar Storage, which operates storage facilities throughout the southeast United States, failed to follow the SCRA’s requirement to secure court orders before auctioning the contents of at least three units rented by servicemembers.
One of the affected servicemembers, an Air Force Staff Sergeant stationed at MacDill Air Force Base, rented a unit at a Tampa facility. The sergeant, who was deployed overseas to Jordan, had stored household goods, military awards, and personal items in the unit.
After Morningstar acquired the facility, the DOJ said it stopped her automatic payments and auctioned her unit for $390.
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Under a consent order awaiting approval by the U.S. District Court for the Middle District of Florida, Morningstar will pay the Staff Sergeant $80,000 in damages, along with $5,000 each to two additional servicemembers.
The company has also agreed to a $40,000 civil penalty and will implement policies to prevent future violations of the SCRA.
The SCRA protects military personnel by requiring court orders before the sale or disposal of their property. The U.S. Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida led the enforcement of this case.
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