Legal Question in Business Law in Virginia
Breaking a lease and property seizure
Have a couple of issues here:
1-A backer for a new buisness misrepresented theirselves and wrote a check that their father had cancelled as a stolen check. This caused the Feb. rent payment for a store front lease to bounce.
2-Contract for the business from parent company denied - so business venture failed.
Attemped to break lease on property and landlord became angry - changed the locks on the doors, therefore seizing all property inside. Has refused to allow anyone in the property to retrieve even paperwork - like our copy of lease agreement. First demanded $5000, then $2100, then when $1000 was paid to cover bad check was told $3500 more needed to be paid. Was given 30 days to pay or else property would be sold. They refused any attempt for payment arrangements!
The $1000 was to pay for bad check. However, landlord claims the money was for March rent and is threatening to prosicute for bad check.
What are our rights?
1 Answer from Attorneys
Re: Breaking a lease and property seizure
It seems to me as if you landlord is, unfortunately
within his rights, if he properly terminates the
lease and auctions the property. The landlord
is not responsible for what others do to you.
Your only claims appear to be against the business
backer and possibly against the parent company.
If you want to preserve your existing business,
it may be possible to file bankruptcy and get
a court order letting you back into the premises.
However, realistically, my advice would be to
walk away from this situation. The only reason
to stay involved would be if you were expecting
to pick up some revenue from the business. If
this is not the case, start over. I wish you
the best of luck.
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