Legal Question in Business Law in Massachusetts

Phone Equipment Lease Termination

My company had a 5 year lease on phone equipment. As the 5 years was ending, we called to see what our options were. The person in customer service said that we could go on a month-to-month basis until we decided. However, when the 5 years were up and we still had the phone equipment, they rolled it into a new 12 month term. When the time came that we decided what to do and wanted to return the equipment, it took them almost 3 months to get us the return address. Then once we returned the equipment, they decided that they also wanted payment for the rest of the 12 month term. That totals about $1900. We don't feel we should be stuck with that 12 month term when we were told that we could go on a month-to-month basis once our 5 year term had ended. They want us to settle for that amount or they'll take us to court. If it goes to court they're saying it will be for as much as $10K instead. What are our options? Is it better off to settle or might we have a chance in court?


Asked on 9/20/04, 9:00 am

1 Answer from Attorneys
Barry Levine Law Office of Barry R. Levine

Re: Phone Equipment Lease Termination

Unfortunately, you situation is all too typical of the realities of justice vs. practicality. While you may very well have a good defense to the leasing companies claim, having your day in court could very well cost you more than the amount being demanded to settle. Assuming that you are a corporation, a corporation cannot defend itself in the court of Massachusetts. Corporations need to be defended by attorneys. An attorney would require a retainer to defend such litigation; a retainer that would probably be greater than that being demanded. In your situation, I would offer them something less than what is being demanded on the road to hopefully negotiating a settlement somewhere in between. You could win the litigation, but but still lose due to the legal expense associated with the litigation, not to mention the time you would have to devote the assisting your attornwy with the defense. You may not want to, but justice can be costly. Sometimes practicality is the order of the day!

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Answered on 9/20/04, 10:04 am


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