Hello all,
Long time no see my old friends! I have been working around the clock to try and get my business not to fail. We all know times are rough, and I wasnt sure which forum this should be posted in (state law forum is baron), so I thought maybe fellow business owners could give me some advice...
For the past year Ive had an auto shop. It was in bad shape but I spent money on graphics, signs, etc. and now it is really nice. I probably put 20k into it, because I have a 3 year lease. I always pay my rent(although mostly late due to hard times), and despite having to shut the doors for a few months due to a service manager quitting, I am planning on opening back up.
2 months ago this guy comes around, says I fixed the shop up nicely and would like to buy my lease and take it over. I am slightly interested, and show him the place. He asks how much the rent is and I tell him and his eyes light up like its some great rate, but only offers me $10k to take over the lease. I told the guy I had well over 50k in it so I couldn't do that. He tells me I will lose the place eventually anyway, and that I should take the money. I tell him no, thinking he meant by losing it, I will go out of business.
Fast forward last month the rent was late again. This time, my landlord serves me with a dispossessory to evict me. I reply to it, and within 7 days of being served I caught up the rent and paid all late fees and the disp filing fee as advised by a real estate attorney. Meanwhile, my landlord refuses to answer any of my calls. He emails me saying he is not going to dismiss it. I had emailed him about the obstacles our shop had faced and that we were going to open back up in past months, and I noticed on the disp it said I was a "occupant of sufferance" or something like that. Before this random guy with a car shop wanted to take over my spot, this landlord accepted all rent and was happy to get it, and some months let the late fee slide. Now he hasnt even cashed Nov's check and its been almost 2 weeks.
The court date is later this week and I have $20k invested in the appearance and another 20k in equipment sitting around. The court says the judge may give me a day or two to remove my stuff if he rules in the landlords favor. Key word was "may" as in he might try to put my stuff out same day. Meanwhile, I have lost over 50k, if I get evicted now, its like folding. I don't think my merchant account would transfer to my house, as I dont have another place. Im pretty sure my biz credit and everything Ive worked hard to establish at this address will be screwed with. I have contracts with business phone, waste removal and bottle water companies, etc. and those will obviously default destroying my biz credit. I have no place to transfer them to.
Anyway, Im at my wits end. I had no idea a landlord could evict this easily and the tenant would have such short time to leave. I know what happened, the other auto shop guy has paid the landlord the 10k. I guess now I know what "you'll lose it anyway" meant.
Any help at all or suggestions? Theyre greatly appreciated.
Thanks
TCO
Got dispossesory notice and court date
Started by
TheChosenOne
, Nov 15 2010 06:12 PM
7 replies to this topic
#2
breeze
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Posted 15 November 2010 - 07:15 PM
Do you have a copy of your lease?
#3
TheChosenOne
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Posted 15 November 2010 - 07:35 PM
Do you have a copy of your lease?
Hey breeze! how ya been?
Yep, I have a copy. This landlord had a monster lease. Something like 35 pages.
edit to add: I guess Im stuck where the landlord wont answer my phone calls, emails or cash the lease check and Im wondering if he just wants me out and if theres something I can say to the judge that won't have me where I fixed up this guys crappy garage so he could make more money off it from another renter.
Its a pretty good scheme he runs. Get the renter to fix the place up and then toss him and up the rent for the next guy. Doesnt seem fair or legal to me??
Edited by TheChosenOne, 15 November 2010 - 07:50 PM.
#4
Posted 16 November 2010 - 12:29 AM
First off that sucks and second that is a big lease. You really need to go though the lease to see if it gives him the power to throw you out which it may if you have ever been or currently are late on any of the payments. In most states the law will be on the side of the landlord and not the renter for commercial properties.
Good luck!
Good luck!
#5
TheChosenOne
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Posted 16 November 2010 - 08:41 AM
First off that sucks and second that is a big lease. You really need to go though the lease to see if it gives him the power to throw you out which it may if you have ever been or currently are late on any of the payments. In most states the law will be on the side of the landlord and not the renter for commercial properties.
Good luck!
Yep, it was a big lease and it was my first. He basically covered his butt every which way so that he could do anything he wanted. I faxed pages over to a real estate attorney and he said technically it could go either way but theres a rule if you pay everything within 7 days of getting the notice the judge should be in favor of letting you stay but theres no guarantee. The problem with that is my whole business plan is on hold waiting to find out if I will be able to stay or I need to try and get as much stuff out of there as possible in a short amount of time.
#6
Posted 17 November 2010 - 07:37 PM
Who is the merchant account thru and when is its term up?
#7
Posted 18 November 2010 - 02:12 AM
Now he hasnt even cashed Nov's check and its been almost 2 weeks.
occupant of sufferance
The landlord is saying you are occupying the property without his permission. Cashing your check could show acceptance. Also, you said you closed the doors for a while. There might be a clause in the lease that says the business must be open and operational. Some add what times of day the biz must be open. Not doing so would put you in breach of contract irrespective of how you paid rent or whether you caught up. You need to read every word of that lease, and prepare a defense for every clause you might have violated. I don't know about your particular relationship with your attorney, but I'd bet you didn't pay him to read all 35 pages while you sat there so he could question you about each and every clause. No? Then I'd say it's your job to make sure your attorney knows which ones you think you might have violated so he can adequately defend you.
#8
Posted 19 November 2010 - 02:24 AM
Now he hasnt even cashed Nov's check and its been almost 2 weeks.
occupant of sufferance
The landlord is saying you are occupying the property without his permission. Cashing your check could show acceptance. Also, you said you closed the doors for a while. There might be a clause in the lease that says the business must be open and operational. Some add what times of day the biz must be open. Not doing so would put you in breach of contract irrespective of how you paid rent or whether you caught up. You need to read every word of that lease, and prepare a defense for every clause you might have violated. I don't know about your particular relationship with your attorney, but I'd bet you didn't pay him to read all 35 pages while you sat there so he could question you about each and every clause. No? Then I'd say it's your job to make sure your attorney knows which ones you think you might have violated so he can adequately defend you.
Any proof you paid the rent? Certified mail receipt? Cashiers check copy?
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