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Wrongful Self Storage Auctions
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Storage companies face lawsuits alleging people who rent storage lockers from them have been subjected to wrongful storage contents auctions in which their property has been wrongfully auctioned off, in violation of state laws. These wrongful auctions involve the selling of property stored in a rented locker when the renter fails to pay. Although not all storage locker auctions are illegal, there are certain requirements that must be met before a person's property can be auctioned off.
Storage locker auctions are typically held when a person has failed to pay for the use of a storage locker. Self-storage companies might respond by refusing to allow the person access to the locker or by auctioning off the contents of the locker. When property is auctioned without the person's knowledge it falls under conversion, which refers to the illegal taking of someone's personal property without that person's consent.
Storage Locker Auctions
When property from a storage locker is auctioned off, it is often at a profit to the storage company. In other words, the auction company makes more off the auction than was owed on the storage locker.
Consumers have complained that their property has been auctioned off without their knowledge. State laws, such as the California Self Storage Act, require self-storage companies to meet certain conditions before a person's property is auctioned. These conditions include sending two separate notice letters prior to denying a person access to a storage locker or the property contained within.
Furthermore, some consumers allege they failed to make payments due to mitigating circumstances or that when they tried to contact the storage company they were unable to reach anyone.
It is not illegal for a storage facility to auction a person's items if that person has failed to pay rent on a storage locker. There are, however, certain conditions that must be met before that auction is held. Failure to meet those requirements could result in a lawsuit against the storage facility, regardless of if the failure was intentional or an accident, such as when the wrong storage unit is auctioned off.
Conversion complaints can result in punitive damages awarded to the plaintiff. Lawsuits have been filed against storage companies alleging storage locker renters had their possessions wrongfully auctioned off.
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Last updated on Jan-7-14
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