Legal Question in Business Law in California

contract dispute issue

My corp signed up for service with a data center space reseller. Our move in date passed, because the space wasn't ready. When our techs moved in our stuff weeks later, they found that the space was about half what they quoted us. We notified them, they said when we need the rest they'll deliver. We agreed. During that month we had power problems, the provider blamed the facility and said they will move clients to a new space. We agreed so long that we move our stuff. They agreed, then moved our equipment during the night without warning. Our techs found that space we got now was even smaller than before and there was no network or power. We agreed to take our stuff out until the space is ready. Two weeks later it was still not ready so we told them we're terminating the contract. The provider is taking legal action for breach of contract. The quote+contract stipulates the amount of space. Can they hold us to this contract after failing to deliver the space? We gave them three months to correct.


Asked on 6/25/08, 9:57 pm

3 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: contract dispute issue

You would definetly have the upper hand in any litigation, assuming (as I do) that your facts are accurate and complete and there are no undisclosed defenses available to the space reseller. Standards for data centers are high and getting higher, and you were very patient with their repeated breaches of the contract. The only question here seems to be whether you sustained damages sufficient to warrant a cross-complaint if they sue you first.

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Answered on 6/25/08, 10:15 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Re: contract dispute issue

I agree with Mr. Whipple. You're the one who seems to have a claim for breach of contract, not the reseller -- unless you and the reseller modified your agreement as these changes came up. If you made new agreements along the way and then breached one of them, the reseller may have a viable claim.

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Answered on 6/25/08, 11:34 pm
Andrew Magwood Andrew A. Magwood Attorney at Law

Re: contract dispute issue

It sounds like you have some defenses to breach of contract and might have a counter-suit for their breach of contract. You should talk to and hire a lawyer yesterday. Good luck.

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Answered on 6/26/08, 2:30 am


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