North Carolina Self-Storage Facility Has Some Regrets

For most people, having to sit down to learn statutory law pertaining to self-storage facilities would not be fun. But what if it paid well?

What I mean is, what if you found yourself enmeshed in a dispute with the facility you use to store your stuff, and there was a financial upside to coming out on top from that dispute?

I mean, that's basically the same framework for most legal disputes involving damages and payments; and it's applies just the same to dispute with self-storage facilities like Go Store It.

So, take a few minutes here to make yourself a more savvy consumer; and, who knows...there might be "some coin" in it for you as well.

This article discusses three possible statutory violations by North Carolina self-storage company Go Store It, and explains how knowledge of those violations can better a equip a consumer to resolve a dispute with Go Store It and other self-storage companies like it in North Carolina.

Contract Requirements

Under North Carolina law, the appearance of certain contractual terms in a storage unit rental agreement must have specific characteristics. For example, the text of the following contractual terms must be in bold font at least 14 points in size and be "conspicuously placed" in the rental contract:

• terms regarding the imposition of late fees
  
• terms regarding any consequences of a late payment
  
• terms, if any, that pertain to the payment of court costs, attorneys' fees, and any other costs associated with the payment of late fees or with judgment against the consumer for late rental payments or late fees

See N.C.G.S. § 66‑305.

Font Size [PASS]

Fortunately for Go Store It, the text of its template agreement uses a font size of 14.7 for all parts except the title and heading of the template agreement. So, the font-size requirement, at least, is met for each of the three types of terms listed above.

Bold Font [FAIL]

However, the bold-font requirement is not met in Go Store It's template storage rental agreement. This is because none of the text in the body of Go Store It's template agreement uses bold font, including the three types of terms specified by N.C.G.S. § 66‑305. So, a Go Store It customer who is party to a Go Store It template agreement that fails to meet this bold-font requirement may have a cause of action against Go Store It for violation of N.C.G.S. § 66‑305.

"Conspicuously Placed" [FAIL]

In addition, Go Store It would be hard-pressed to prevail on an argument that each and every occurrence of the three types of terms specified by N.C.G.S. § 66‑305 is "conspicuously placed" in Go Store It's template rental contract. For example, there are nine separate sections in Go Store It's template agreement that discuss late fees, late payments, or consequences of late payments.

1. A "FEES" section lists the "Late Fee" amount.
2. A "SCHEDULE OF FEES" section b (outlined as part 2.b) states in underlined, but not bold, text: "A late payment of more than four (4) days will result in a late charge of $15.00 or 15% of Monthly Rent, whichever is greater and LESSOR WILL OVERLOCK OCCUPANT'S UNIT."
3. A "SCHEDULE OF FEES" section c (outlined as part 2.c) states: "After thirty two (32) days past due Lessor will assess a $100.00 lien fee."
4. A "DEFAULT" section (outlined at section 3) states in blue text that "The Occupant shall be in default if the Occupant fails to pay rent and charges when due[,]" and that, "If any monthly installment is not paid within five (5) days after its Due Date [...] Occupant shall be deemed to be in default." This section also states that: "Upon default Lessor may, without notice, deny the Occupant access to the property located in the Facility. Occupant's property will be sold at public auction if Occupant fails to pay all sums due to Lessor to cure its default."
5. A "DENIAL OF ACCESS" section (outlined at section 4) states: "When rent or other charges remain unpaid for five (5) or more days, Lessor may deny Occupant access to the Space."
6. A "LESSOR'S LIEN" section (outlined at section 11) states, in ALL CAPS text, that: "ALL ARTICLES STORED UNDER THE TERMS OF THIS RENTAL AGREEMENT MAY BE SOLD TO SATISFY THE LESSOR'S LIEN IF OCCUPANT IS IN DEFAULT AS PROVIDED IN SECTION 44A-40 THROUGH 44A-46, NORTH CAROLINA REVISED STATUTES."
7. As a sub-part to the "LESSOR'S LIEN" section, a section outlined as 11.a states that: "If Occupant fails to pay rent or any part thereof [...], Occupant will be considered in default."
8. As a sub-part to the "LESSOR'S LIEN" section, a section outlined as 11.b states that: "If rent and other charges remain unpaid or unsatisfied for thirty two (32) or more days, Lessor may enforce its lien on the personal property stored in the Space pursuant to Chapter 44A-40 through 44A-46 of the North Carolina Statutes for: rent, late charges, labor, damages, cleaning fees; charges for checks returned to Lessor, postage amounts for mail providing notification of late charges and auctions, expenses necessary for the preservation of the personal property stored on the leased premises, and the expenses incurred in the sale or other disposition of said personal property pursuant to law. Lessor will cut the locks on Occupant's Space and may remove any and all personal property located within said space for the purpose of selling same."
9. An "ATTORNEY'S FEES" section (outlined at section 15) states that: "In the event the Lessor retains the services of an attorney to recover any sums due under this Agreement for any unlawful detainer, for the breach of any covenant or conditions hereof, or in defense of any demand claim or action brought by the Occupant, the Occupant agrees to pay to the Lessor the reasonable costs, expenses, and attorney's fees incurred in any such action."

With the exception of items 1, 3, 4, and 6 above, there is nothing "conspicuous" about the "placement" of terms contained in the sections referenced in the above list. In addition, there are certain other sections in Go Store It's template agreement that are, at least, more conspicuous than items 2, 5, 7, 8, and 9 above, in that those other sections contain text written in ALL CAPS. A good example are sections that seek to indemnify Go Store It or to limit Go Store It's liability by stipulating limitations on the value of property stored in the units.

The reason Go Store It chose to make those indemnification and liability-limitation sections more conspicuous is that they matter to Go Store It's interests; and this is exactly the same reasoning North Carolina legislatures used when enacting N.C.G.S. § 66‑305 for the purpose of protecting consumers' interests.

So, the argument here for a disgruntled Go Store It tenant might be that, insofar as Go Store It's presentation of the indemnification and liability-limitation sections demonstrate what Go Store It believes to constitute conspicuous, the lack of the same presentation for each and every occurrence in Go Store It's template contract of the three types of terms specified by N.C.G.S. § 66‑305 suggests that those sections lacking that presentation would not meet Go Store It's own exemplification of what conspicuous placement looks like; and, for this reason, it would be perplexing for Go Store It to argue that those occurrences were compliant with the "conspicuously placed" requirement. To the extent that argument lands, then, at least one conclusion might be that the "conspicuously placed" requirement in Go Store It's template rental contract is not met; and a Go Store It customer who is party to a Go Store It template agreement that fails to meet this "conspicuously placed" requirement may have a cause of action against Go Store It for violation of N.C.G.S. § 66‑305.

Lawsuit Against Go Store It

If a disgruntled Go Store It customer finds that Go Store It has failed to comply with N.C.G.S. § 66‑305, then that consumer might file suit based on Go Store It's violations of N.C.G.S. § 66‑305, and seek recovery of treble damages, attorney's fees, and costs (on the wings of N.C.G.S § 75-1.1, that is, for unfair and deceptive trade practices).

Upon review of the evidence underpinning that lawsuit, Go Store It would no doubt regret its typographical choices.