LAW REVIEW 1079
Congress Strengthens SCRA Provision on Terminating Lease of Premises or Vehicle upon Activation, Deployment, or PCS Orders
By Captain Samuel F. Wright, JAGC, USN (Ret.)
4.2—Right To Terminate a Lease or Contract upon Mobilization
On October 13, 2010, President Obama signed into law the Veterans’ Benefits Act of 2010 (VBIA-2010), Public Law 111-275. This important new law makes several welcome amendments to the Uniformed Services Employment and Reemployment Rights Act (USERRA) and the Servicemembers Civil Relief Act (SCRA).
Congress enacted the SCRA in 2003, as a long-overdue replacement for the Soldiers’ and Sailors’ Civil Relief Act (SSCRA), which can be traced back to 1917. The SCRA is codified in title 50, United States Code Appendix, sections 501-596 (50 U.S.C. App. 501-596).
The SSCRA has long provided the right to terminate a lease on premises (apartment, house, office, etc.) upon entering active duty or upon deployment or Permanent Change of Station (PCS) orders. In 2003, the SCRA extended this provision to give the service member the right to terminate a lease on a vehicle. Vehicle leases did not exist in 1917.
The SCRA provision on terminating leases is 50 U.S.C. App. 535. Section 301 of VBA-2010 amends subsection (e) of section 535 to read as follows:
``(e) Arrearages and Other Obligations and Liabilities.--
``(1) Leases of premises.--Rent amounts for a lease
described in subsection (b)(1) that are unpaid for the period
preceding the effective date of the lease termination shall be
paid on a prorated basis. The lessor may not impose an early
termination charge, but any taxes, summonses, or other
obligations and liabilities of the lessee in accordance with the
terms of the lease, including reasonable charges to the lessee
for excess wear, that are due and unpaid at the time of
termination of the lease shall be paid by the lessee.
``(2) Leases of motor vehicles.--Lease amounts for a lease
described in subsection (b)(2) that are unpaid for the period
preceding the effective date of the lease termination shall be
paid on a prorated basis. The lessor may not impose an early
termination charge, but any taxes, summonses, title and
registration fees, or other obligations and liabilities of the
lessee in accordance with the terms of the lease, including
reasonable charges to the lessee for excess wear or use and
mileage, that are due and unpaid at the time of termination of
the lease shall be paid by the lessee.''.
This welcome amendment strengthens the SCRA provision on terminating leases on premises and vehicles.
