Legal Question in Business Law in Colorado

I bought a medical supply company in Sept 2011, This was a stock purchase. this company rents oxygen cylinders from a supplier.

I soon realized that the amount of cylinders that they said i had was not correct. The Manager and major invester with me asked the supplier in oct 2011 about the rental invoice and was told by the supplier that he would look into it. These cylinders are in patients homes across 5 counties. After weeks of going to patients homes and getting a correct count I asked the supplier what we could do to get this corrected. I was told he would check into it and let me know, but not to worry because they would take care of us. I talked to this supplier several times and was told the same thing. We will look into it, we will get back with you, don't worry we will take care of you. But they sent me a rental bill every month. In april 2012 we stopped paying the rental bill and asked for a solution to this from the supplier. In dec 2012 the rental bill had reached almost $20,000.00 and I was still getting no answer. I sent the company a e-mail asking for this to be taken care of and all rental charges paid be refunded. I would pay for all rentals delivered to me since I bought the company but not the rest. I have been sent a letter from a lawyer giving me intill the end of march to pay or I will be shut off and charged the purchase price of the cylinders ( which will be $40,000.00-$60,000.00). What can I do?


Asked on 3/11/13, 11:12 am

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

You need to act now as there are serious issues on your rights and the time to exercise those rights. An attorney would have to review the purchase agreement as the seller may be liable for these costs and other damages.

As to the supplier, you may have a defense based on promissory estoppel and other means depending on the facts.

This is not a sales pitch or scare tactic, but you need to act quickly to assert your rights in the sale as you can all but guarantee the supplier will sue you and you will have to make a claim against the seller as being liable. Contact a business attorney to review and advise on this issue as soon as possible.

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Answered on 3/11/13, 11:49 am


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