Legal Question in Business Law in Washington

Breaking Commercial Lease

In January 2002 I signed a three year commercial lease for some office space. I had originally asked for two, but the owner requsted three and I agreed. I as in the middle of a very stressful divorce and was not a very good negotiator as a result. In October 2003, I was informed I would probably lose the consulting contract I was depending on for income at the end of the year. I gave the owner 30 days written notice, and relocated so that I would be closer to my client. I had hopes that I might be able to get an extension if I workd out of their facility instead of my own office. This tactic did not succeed, and I am currently without a contract. During the term of the lease, I incorporated but did not have the lease reassignd to the corporation. The owner is not threatening to sue, believing I have the assets to pay the third year lease payments, which I do not. The divorce has left me in a pitiful state financially, and I may be looking at peronal bankrupcy in the near term. So, my question is, is there any maneuvering I can do to break this lease and avoid bankrupcy ? My lawyer thinks bankrupcy is the best option, though, personally I abhor the thought.


Asked on 1/22/04, 9:58 pm

2 Answers from Attorneys
Jane M. Savard TrueNorthLaw PLLC

Re: Breaking Commercial Lease

Without knowing anything else about your finances or your lease, it's a bit difficult to offer sound advise but if you advise the owner that you cannot pay and that you need to renegotiate the lease or file for bankruptcy, the owner may consider the partial v. nothing option.

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Answered on 1/22/04, 10:41 pm
Matthew King Wershow & Ritter, Inc. P.S.

Re: Breaking Commercial Lease

It can be difficult to break a lease solely on the grounds of financial problems. But make sure that the landlord is attempting to rent the unit currently. If he is not, then he is not mitigating his damages, which could help if he does sue you. I recommend negotiating a lower amount in order to give him some incentive for release you from the release, and ensures some payment instead of having to deal with bankruptcy.

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Answered on 1/23/04, 10:14 am


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