Class Action Asserts NYC's Largest Storage Company Hides Fees

NEW YORK, July 11, 2011 /PRNewswire/ -- The biggest independent storage company in the U.S.A. which  boasts it provides "simple" bills with "no hidden fees" is lying, according to a class action complaint filed today in the Supreme Court of the State of New York, County of New York.    

Manhattan resident Stacie Handwerker is suing New York-based CitiStorage LLC, CitiPostalInc. and Ares Capital Corporation, collectively known as CitiStorage, on behalf of herself and all other individuals and companies who have been misled by the company's deceptive and misleading billing practices.  With more than 3000 customers and nearly 3 million boxes, the company describes itself as "the largest stand-alone independent records storage company in the country."  According to the company's website, "Many of Greater New York's largest hospitals, banks, financial services providers, law firms and government institutions depend on CitiStorage to store and manage their records."    

Ms. Handwerker and the class are represented in the matter by Steven L. Wittels and Jeremy Heisler in the New York City office of Sanford Wittels & Heisler LLP.    

"In stark contrast to its advertising claims, CitiStorage's bills and billing practices are designed to mislead customers and generate millions of dollars in unwarranted late fee surcharges for the company," said Mr. Wittels. "Ms. Handwerker is one of thousands of its customers in the New York metropolitan area who have been bilked by this giant storage company's underhanded billing scheme."    

According to the complaint, CitiStorage crafts its bills to include a 2% late fee surcharge in the total due on all invoices, even though the surcharge is not owed by customers if they pay their storage bill by the 15th of each month.  In addition, the company sends its invoices four or five days into each month, which reduces the time customers have to pay their bills to avoid owing the surcharge, and it compounds its deception by failing to credit or return the 2% surcharge to customers who pay their bills on time.    

The complaint characterizes CitiStorage's conduct as "a textbook breach of contract and consumer fraud," in violation of the New York Consumer Fraud Statute, as well as a breach of contract and unjust enrichment to the company.    

Ms. Handwerker's class action seeks to stop the company's duplicitous billing strategy on behalf of herself and the class of all CitiStorage customers who have been billed for a hidden late surcharge, and whose late charges were not returned even though the company received payment on time. The class period extends back 6 years from today's filing.    

"Only through the vehicle of a class action can the victimized customers be empowered to remedy this wide-spread wrongdoing," said Mr. Heisler.  "This suit provides a means of leveling the playing field to ensure that companies like CitiStorage engage in fair and honest business practices."

CitiStorage has giant storage facilities; one at 5 N. Eleven St., Brooklyn and the other at 107 West Side Ave., Jersey City, New Jersey. Plaintiff- Ms. Handwerker's complaint asks the court to enjoin CitiStorage from continuing its deceitful billing practices, and to return to her and all other members of the class all misappropriated 2% surcharges.      

About Sanford Wittels & Heisler, LLP Sanford Wittels & Heisler LLP (SWH) is a boutique class-action litigation law firm with offices in New York, Washington, D.C., and San Francisco. SWH specializes in civil rights and general public interest cases, representing plaintiffs with employment discrimination, labor and wage violations, predatory lending, whistleblower, consumer fraud, and other claims. Along with an expertise in class actions, SWH also represents select individuals and has developed a particular expertise in the representation of executives in employment disputes.  For more information, visit www.swhlegal.com      

For more information, contact Jamie Moss, newsPRos, 201-493-0127    

SOURCE Sanford Wittels & Heisler LLP

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