Legal Question in Business Law in Maryland

Norvergence Bankruptcy

Our small business signed up with Norvergence to obtain telephone services as well as DSL on the computer. In order to have this we had to lease a Matrix box to be installed in our office. We did all of this and signed a contract with the company. However, even though the rental agreement on the equipment was between Norvergence and ourselves we received the bills for the monthly rental from a leasing company. The agreement signed was for a period of 5 years. (By the way, in the agreement, the space that shows who we are paying is BLANK!) Within the first year of this service, Norvergence, goes bankrupt!! We, of course, lost the services that they were providing to us. We are still receiving bills from the leasing company even though the equipment leased by us through Norvergence is no longer in use due to the fact that Norvergence went bankrupt. Also, our computer tech discovered that this ''Matrix box'' doesn't do anything!!!) We haven't use it since it was delivered to us!! My question is, do we still have to pay the monthly payment for the leased equipment? Didn't that contract become void when Norvergence went bankrupt?? Will our credit be ruined if we no longer make this absurd payment to the leasing company??


Asked on 9/02/04, 4:31 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Norvergence Bankruptcy

I suggest you (or your attorney) write a letter to the leasing company advising them that since the equipment for which you are being billed is no longer operating, you consider the contract to be terminated and are no longer obligated to pay the leasing fees. Ask them to stop billing you, failing which you will pursue a harassment claim. You should also advise them that any injury done to your credit by their continued efforts to collect on this lease will result in appropriate legal action.

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Answered on 9/02/04, 5:01 pm


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