When a Storage Company Auctions a Servicemember’s Property: Understanding SCRA Protections
Military service can make it difficult for servicemembers to monitor financial accounts, respond to notices, or protect property stored far from their duty station. The Servicemembers Civil Relief Act, commonly known as the SCRA, provides important legal protections intended to prevent military service from unfairly harming a servicemember’s financial and legal interests.
Recently, one servicemember reported that a storage company auctioned the contents of a storage unit containing personal belongings and military equipment. According to the servicemember, the company later offered $2,000, even though the servicemember remained financially responsible for the missing military equipment.
Although every case depends on its specific facts, the servicemember may be entitled to relief under the SCRA.
Storage Liens and the SCRA
Under 50 U.S.C. § 3958, a person or company holding a lien on a servicemember’s property generally may not enforce that lien during the servicemember’s military service, or for 90 days afterward, without first obtaining a court order. Even if the lienholder obtains a default judgment, the servicemember may be able to have the judgment vacated under the SCRA.
This protection expressly includes liens involving the storage of a servicemember’s property. Therefore, a storage company generally cannot rely only on its contract or ordinary state auction procedures when disposing of property belonging to a protected servicemember.
A court reviewing the matter may stay the proceedings or adjust the obligation when military service materially affected the servicemember’s ability to satisfy the underlying obligation.
Why Military Equipment Matters
The loss of military equipment may create consequences beyond the value of ordinary household property. A servicemember may be required to reimburse the government for organizational clothing and individual equipment that cannot be returned. The servicemember may also lose personal property, awards, photographs, records, uniforms, and other irreplaceable items.
Accordingly, the value of a potential claim may not be limited to the amount for which the storage unit’s contents were auctioned. The value of the property, replacement costs, military liability, emotional impact, applicable state-law claims, and the circumstances surrounding the auction may all require review.
Steps a Servicemember Should Consider
A servicemember who believes a storage company improperly auctioned property should preserve all relevant evidence, including:
- The storage agreement and payment history;
- Military orders and proof of qualifying service;
- Auction, default, and sale notices;
- Emails, text messages, and recorded communications;
- An inventory and estimated value of the property;
- Military hand receipts or records showing responsibility for government equipment; and
- Any settlement offers made by the storage company.
The servicemember should also determine whether the company obtained a court order before conducting the sale. Depending on the facts, the servicemember may seek assistance from a military legal assistance office, private counsel, or the Department of Justice.
The SCRA provides meaningful protections, but eligibility and available remedies depend on the servicemember’s duty status, the timing of the auction, whether a court order existed, and other case-specific facts.
What we are sharing is not legal advice, so please do not rely on it without speaking with a lawyer
Reading this does not create an attorney–client relationship. Every situation is fact-specific, and outcomes depend on the details of each case. You should consult a licensed professional for advice specific to your situation.
