Legal Question in Real Estate Law in California

I have been leasing restaurant equipment to an individual and he has not paid for several months. Would it be legal for me to walk into his building and recover my equipment or how could I go about doing this?


Asked on 12/28/10, 5:29 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I assume the retaurant equipment is personal property rather than real property, even though you asked it under the Real Estate and Real Property heading. I'm going to say rather cautiously that the answer is probably yes, provided that you can do it without causing a breach of the peace. Division 10 of the California Commercial Code covers leases of personal property. Subject to any contrary provision of the lease, the Code grants the lessor the right of self-help against a defaulting lessee (Section 10501(c)) and Sections 10523 and 10525 give the lessee the right to recover possession without judicial process, if that can be done without a breach of the peace. You can also disable the equipment in place. Nevertheless, I would suggest carefully re-reading the default and remedies language of your lease first, as it could modify your rights, and if in any doubt, see a business lawyer.

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Answered on 1/02/11, 6:30 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Remember to file a UCC-1 to perfect your security interest in the property (in case they go bankrupt). Unless the people let you waltz in and take the property, you would need to go to court for a writ of replevin. If your lease provides for it, you can recover your attorney fees.

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Answered on 1/02/11, 7:59 pm


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