SSA Works to Stay on Top of Potential Legislative Threats
SSA WORKS TO STAY ON TOP OF
By Laura Williams-Tracy
New Jersey is at the forefront
of association’s targets
to protect its members
The self-storage industry faces
familiar threats, as well as
some lesser-known threats, in
legislatures across the country.
These new threats have prompted
the national trade group for selfstorage operators to join with other
industries in the legislative arena to
protect the rules of doing business.
“The growth and success of selfstorage has brought with it more
attention. SSA is responding to more
cases where we have to defend
the industry,” said Tim Dietz, Chief
Operating Officer of the Self Storage
Association. “Nowhere is that more
apparent than in New Jersey, where
wide-sweeping legislation regarding
consumer laws threatens not just selfstorage but just about any consumerbased business operating in the state.”
bar companies, such as storage
operators, from asking customers to
sign contracts with provisions that
have been conventional for many
years. The bill would change the state’s
Truth-in-Consumer Contract, Warranty
and Notice Act (TCCWNA) to prohibit
consumer contracts from utilizing
elements that mitigate frivolous lawsuits
and exposure to liberal court decisions.
Under the bill, any contract that
contains provisions asking a consumer
to accept certain conditions that provide
indemnification for the business—such
as arbitration in lieu of lawsuits—could
be declared null and void. If the law
passes, any company that violates
the prohibition would be exposed
to a $100 per violation fine, which
could be several per contract, along
with damages plus counsel fees.
New Threats
The bill is much broader in scope
than the self-storage sector, affecting
any business based on contracts,
such as fuel distributors, certain
retail businesses and car dealerships
in New Jersey, Dietz said.
A trio of New Jersey lawmakers is
sponsoring legislation that would
There is an entire cottage industry
of attorneys looking to find subtle
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SBOA Magazine - Fall 2015
contractual violations, Dietz said.
“It’s not driven by consumers. It’s
driven by a certain class of lawyers
looking to create their own relevance.
There’s nothing forcing customers
to sign a contract and enter into
an agreement in the first place.”
Alida Kass, chief counsel of New
Jersey Civil Justice Institute, worked
with the SSA and others this spring to
develop testimony before a legislative
committee considering the legislation,
which was voted on in committee but
hasn’t yet been brought to the floor
for a vote. Kass said she believes
even if that happens, the legislation
won’t likely be signed by New
Jersey Governor Chris Christie.
But she says the legislation is
complex because it overlaps within
the context of arbitration, the rules of
which are set at the federal level.
“The Supreme Court has been strong in
its defense of federal preemption in this
area,” Kass said. “What they’ve said
is, states cannot regulate arbitration
or disfavor arbitration and can’t refuse
to uphold arbitration agreements.”
Kass said while she testified that this
legislation would violate the federal
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