Legal Question in Business Law in New Jersey

We are a small business that rented a space from an equipment company (commercial washers and dryers) as they had the store lease. We fell behind on rent payments and we were simply told we owed $20k, yet they never gave us any paper work. We then moved to our own location and out of necessecity leased equipment from them. As we did not have the initial capital the equipment company said they would do us a "favor" and lease us some used equipment and add the amount we owed in rent (20k). We signed a lease document, but were not given copy. Half of the machines were tool old and broke down soon after. They only gave us 6 mos warranty so we ended up having to buy equipment on our own. We did fall behind payments (we were told to pay the full lease amount per month even on equipment that was broken down or else they would pick up all equipment), yet we have proof we have paid a good portion of the debt. Now they sent us a letter from their attorney simply saying we owe in excess of $100k and that they are terminating the lease and picking up the equipment within 15 days. 100k seems like a very high amount and it doesn't even seem they have take into account any of our payments. We have all the intention to pay and catch up on payments, however, if they take the equipment we would have no work, therefore, no funds. Is this legal? for them to simply throw an amount at us? Their attorney makes no mention of any of our payments? and can they just simply come to our store and take equipment in 15 days time? Any suggestions are greatly appreciated. We are in NJ


Asked on 12/21/12, 8:00 am

2 Answers from Attorneys
Robert Davies The Davies Law Firm, P.A.

you have to hire a lawyer and fight them.

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Answered on 12/21/12, 8:07 am
Barry Gartenberg Barry F. Gartenberg LLC

Well, the suggestion is this, get legal representation before entering such transactions. As to your problems now, To paraphrase H.L. Mencken, "For every question, there is an answer that is simple, neat and wrong." Your adversary's rights, as well as your rights, cannot be determined and communicated in this brief email exchange. However, I routinely represent clients with problem such as yours. I invite you to contact me to discuss your case. 973-921-0600.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

Please visit my website! www.bgartenberg.com or call me 973-921-0600 if you�d like to learn more about me or my practice. Thank you.

IRS CIRCULAR 230 DISCLOSURE: As required by U.S. Treasury Regulations governing tax practice, you are hereby advised that written advice contained herein (if any) was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

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Answered on 12/21/12, 8:15 am


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