The California Court of Appeal recently made it more difficult for plaintiffs to certify class actions based on false advertising or fraud. The REIT is scheduled to file its response to the suit in early June. Perez v. Public Storage, No. The Lawsuit involves Public Storage’s self-storage insurance … Success! The suit, filed in federal court in Miami, seeks restitution for all of the insurance premiums paid to Public Storage by its customers over the past four years, an amount that potentially could total hundred of millions of dollars. Information suggests that Public … In a new class-action lawsuit, a Florida man alleges self-storage operator Public Storage deceived customers who bought tenant insurance policies. Experienced Class Action Lawyers and Complex Litigation Attorneys. “Of course, they want you to buy their insurance and it is profitable for them, but you could still have your own [coverage].”. Currently, we are involved with a class action that alleges deceptive business practices by Public Storage. If you rented storage units from Public Storage in the state of Florida and purchased self-insurance policies, you may be entitled to benefits from the class … Perfect Solution Storage’s cheapest policy in Florida costs $11 a month for $3,000 worth of coverage, according to the suit. MEMORANDUM OF DECISION. James Colby of Kansas City is also waiting. A lawsuit filed in California state court alleges that Public Storage has been unfairly profiting from these forced insurance payments. Greenberger said tenant insurance is a good idea for consumers because deductibles on most homeowner’s and renter’s policies are too high to cover a total loss of contents in a storage unit. On Monday, January 28, 2019, the Public Storage class action trial began in the Superior Court of California, County of Los Angeles. By contrast, $4,000 worth of coverage from U-Haul’s recommended insurer, SafeStor, goes for $6 a month in Florida. Of that, $67.8 million was net profit. Resolved Sedgewick CMS — public storage insurance M Mohan2010 This is regarding the Claim Number [protected]-0001, We have taken insurance when we stored our luggage at Public Storage and all of our good got spoiled when we took out public storage. Public Storage has agreed to settle a class action lawsuit alleging it deceived some of its tenants by misrepresenting that it would send the premiums collected through the sale of self-storage insurance to an independent insurance company. Self Storage Acquisition News for January 2021, Storable welcomes new investment partner: EQT, Public Storage to settle class action lawsuit, U-Haul sees 16.7% bump in self-storage revenue, Jernigan: “The reports on the demise of the storage sector are greatly exaggerated”, Property tax pain on tap for self-storage sector. The premium appears as a line item on monthly statements for Public Storage customers. Has anyone from the Public Storage company or the insurance company acknowledged receiving your claim, or offered to pay for your damages? Willis started working with Public Storage after the lawsuit … Call today at 800-688-8057 for a free reservation and get your first month's rent for just $1. Cosgrove said the suit is open to all Public Storage customers who bought insurance from the company during the past four years. Audet & Partners, LLP has initiated a class action lawsuit on behalf of customers of Public Storage in 2015. Judge sides with Public Storage in insurance class action case A California judge has tentatively sided with Public Storage in a $100 million class-action lawsuit that alleged the self-storage REIT tricked California tenants into believing they had to buy company-sold insurance when they rented storage units. I fee violated. The SpareFoot Storage Beat is your go-to source for news, features and analysis about the self-storage industry. In 2011, 61 percent of the REIT’s customers bought insurance policies marketed by Public Storage. I ALSO found out that my certificate of storage insurance provided coverage up to a maximum of $2,000, subject to a $100 deductible. Attorneys are either actively filing these cases or investigating to determine whether lawsuits can be filed. The plaintiff, Colin Bowe, alleges that Public Storage sold tenant insurance to him and other storage consumers without properly disclosing that the company retains a “substantial portion” of the premiums. Holland & Knight of Miami and Newport Trial Group of Newport Beach, CA, are representing Public Storage in this case. Attorneys with the two law firms could not be reached for comment. The Lawsuit involves Public Storage’s self-storage insurance sold to its tenants at Public Storage's California facilities. The sale of insurance policies is high-margin source of revenue for Public Storage. Alexander Harris/May 27, 2014March 10, 2020. You can call him Al. Bruce Berlin v. Public Storage, Inc. CV075007494 Decided: August 05, 2011. Representatives of Public Storage could not be reached for comment. The anatomy of a self-storage zoning case, SiteLink wins $1.7 million judgment against eMove, E-commerce trailblazer Scott Bintz sells storage portfolio in North Dakota, Sold! As noted in the company’s 2013 financial report, the company grossed $84.9 million from the sale of tenant insurance policies in 2013. Public Storage customers that purchased self-storage insurance in California between 2010-2016 may have been charged illegally excessive premiums for self-storage insurance. The company claims that the accusations are unfounded, and that the customers purchased the insurance of their own volition. “If my deductible is $2,500 and I agree to a $3,000 value limit at Public Storage and I had a complete loss, I’d get $500 back, at best,” Greenberger told The SpareFoot Storage Beat. Copyright © 2020 by Audet & Partners, LLP. The number of customers buying policies also has been on the rise. It alleged that the insurance Public Storage offers is not from a separate company, but from subsidiaries of public storage itself. Public Storage faces class-action suit over tenant insurance. The SpareFoot Storage Beat is your go-to source for self-storage news, features and analysis. Send us a tip. In Downey v.Public Storage, Inc., Case No. Superior Court of Connecticut. All Rights Reserved. New Hampshire Insurance is not a defendant in the suit. Audet & Partners, LLP has initiated a class action lawsuit on behalf of customers of Public Storage in 2015. In fact, the suit claims, Public Storage “enriches” itself by retaining much of each premium. These suits involve all sorts of things. Greenberger compares Public Storage’s tenant insurance program with coverage offered by rental car companies. The Class-Action Lawsuit The self-storage industry has grown so much over the past decade that it’s now on the radar of class-action attorneys. The suit against Public Storage contains five counts: violation of the Florida Deceptive and Unfair Trade Practices Act, breach of contract, unjust enrichment, breach of covenant of good faith and fair dealing, and unconscionability. If you are eligible for this class action lawsuit, file a claim by 1/11/2016 to receive up to 50% of the total alleged damages. Then, the insurers typically return a portion of the premiums to the operators in the form of marketing or administrative fees. The lawsuit says it is Public Storage that runs the insurance program, sets rates and approves or denies claims. Public Storage sells hundreds of thousands of insurance policies each year, with 700,000 issued in 2012 alone. Eyewitness News tried to reach a manager or supervisor to comment on the investigation, but no calls were returned. Public Storage requires all of its tenants to carry insurance. You'll begin receiving the newsletter within a week. We offer a wide variety of units and sizes available with no obligation and no long-term commitment. This is Audet & Partners’ current list of open lawsuits and investigations. The coverage offered by Public Storage, called Perfect Solution Storage Insurance, is underwritten by New Hampshire Insurance Co. In 2015, Public Storage settled a class-action suit in Florida in which plaintiffs claimed the REIT misrepresented how it was using the premiums collected from customers who bought tenant insurance through the company, a source reported. After Public Storage filed an opposition and plaintiffs filed their reply, the trial court held a hearing to entertain argument. Weekly Self Storage Acquisition Round Up 1.20.21, The Roll Up: Weekly Self Storage Development News 1.20.21, Soon to be a public company, Janus aims for $1 billion in sales by 2023, Extra Space Storage continues clean energy leadership with 65 more solar installations from Pivot Energy, Storage Exchange debuts brokerage alternative for self-storage industry, Billion dollar deal sets stage for self-storage acquisition activity in 2021, The Roll Up: Self Storage Development News for January 2021, Sold! Still, revenue from tenant insurance remains a small portion of the company’s total revenue. Cosgrove said in that case, Costa Cruise Lines line invoiced customers for a port charge. Garcia filed a claim on the insurance policy that he said Public Storage had required him to buy. The suit says Bowe and other customers who bought tenant insurance received a contract addendum authorizing Public Storage to “conduct the administrative function of receiving premium to send to the insurance company on my behalf.”. Public Storage has agreed to pay $5 million to settle claims that it overcharged customers for self-storage insurance. You can click here to view a report of the commencement of the trial by Law360.com, a major publication tracking significant legal developments throughout the United States. The suit claims that the insurance program offered by Public Storage is “a hidden profit center for itself that kicks back unconscionable profits at the expense of consumers.”. 153 at Public Storage in Monmouth Junction at a cost of $174 per month. Public Storage is being represented by William M. Audet, Steven R. Weinmann, and Ling Y. Kuang of Audet & Partners. BC611584. From winning cases that make streets safer throughout the state of California to using a class action lawsuit to tackle the energy companies that caused the 2001 energy crisis in California, Baker, Burton & Lundy is a champion for consumers. Case Summary: This is a settlement for a class action alleging that Public Storage told Florida tenants it would send premiums collected for self-storage insurance to an insurance company, but that it retained more than 75% of the money collected. “What really made me scratch my head is that [the suit] relies very heavily on this idea that people were basically forced or received this hard sell into insurance,” Greenberger said. This practice likely runs afoul of consumer laws and regulations in many states that require transparency of companies engaging in the sale of similar insurance coverage. Every few weeks it seems another class-action lawsuit is being filed against a storage business. Information suggests that Public Storage fraudulently failed to disclose to customers that a significant portion of the premiums collected for this insurance were being wrongfully diverted directly to Public Storage. “If it turns out to be the case that you aren’t allowed to recommend your own insurance to people … a lot of other businesses would be in bad, bad shape,” Greenberger said. Please complete and submit the inquiry form on the right side of this page, or give us a call at (800) 865-1461. Office 415.568.2555 Fax 415.568.2556 Toll Free 800.965.1461. Public Storage’s insurance revenue rose 8.8 percent from 2012 to 2013. Unsolicited Phone Calls and Text Messages, Audet & Partners, LLP Launches Groundbreaking Class Action Lawsuit Based on Roundup Cancer Link, Defective 3M Earplug Lawsuit Alleges Defective Design, Kona Coffee Lawsuit Alleges Mislabeling of Inferior Blends, Prevagen Lawsuit Alleges False Advertising, Instacart Driver Lawsuit May Allege That Company Misapplied Tips, Amazon Driver Lawsuit May Allege That Company Misapplied Tips. The practice suggested above appears to have grossed the company more than $80 million in 2013. On March 21, 2014, Packwood rented unit No. Here, Zurich required Public Storage to defend a declaratory judgment action regarding Zurich's duty to defend and indemnify Public Storage against claims in a state-court lawsuit. Orange Door Claim Intake Form Email: 2618orangedoor@sedgwickcms.com Fax: 844-244-2286 *Orange Door Storage Insurance Program *CONTRACT : 2618 Internal Sedgwick use only Reporter Information “They tell consumers [the premium] is a pass-through cost and they will play no role in the insurance of the consumer’s goods,” the firm’s founding partner, Scott Cosgrove, told The SpareFoot Storage Beat. Despite having knowledge that self-storage insurance is generally unnecessary for renters with other types of insurance (e.g., homeowners, renters, or business insurance), Public Storage customarily advised renters that self-storage insurance is required. And it says Public Storage keeps most of the profit. Plaintiffs in the Public Storage lawsuit are seeking reimbursement in an approximate amount of $100 million for insurance that they claim was fraudulently and/or illegally sold to them by Public Storage. Client ’ s self-storage insurance that Public … Public Storage, called Solution! 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