Q: Commercial storage rate for our small business has increased overnight by 53% without any notice. Is it legal in CA ?
The storage rate for our small business has increased overnight by 53% without any notice. The warehouse is located in California. Is it legal at all? They did admit in writing that we didn't have a notice, but demanding payments at a new increased rate plus other extra fees. An old storage/company warehouse was bought by a new bigger business and we didn't sign any new agreement with them. We understand it's totally unethical, but do we have any options?
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A:
In California, commercial storage rate increases require reasonable notice to tenants, typically 30 days in advance for month-to-month agreements. Since you didn't sign a new agreement with the new owners, your original contract terms should still apply, and they must honor these until proper notice is given.
You have strong legal grounds to dispute this increase, especially since they admitted in writing that no notice was provided. The new owners inherited your existing contract when they purchased the property, and they can't arbitrarily change terms without proper notification. You can file a complaint with the California Department of Consumer Affairs and consider seeking damages for any overcharges.
Your immediate steps should be to send a formal written complaint to the storage company, citing California Civil Code Section 1946 regarding notice requirements. Keep paying your original rate to maintain good faith, but document everything and consider reaching out to the local chamber of commerce for mediation services. If they persist with unfair practices, you may need to take legal action through small claims court, where you can seek recovery of excessive charges plus related damages.
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