Leased Equipment Taken By Landlord

T

toffee crisp

Hi tricky situation this.

Our commercial lease was forfeited (fine!). We had ten days to remove our equipment. Some expensive leased equipment was left on site during these ten days with a view to picking it up on the eighth day. As we start removing the equipment, the landlord says that he has purchased it from the leasing company. We phone the leasing company who confirm that this has occurred.

Now the issues are: a) We have a letter from the leasing company giving us the right to purchase the equipment which is valid until 13th October 2010 (the landlord purchased the equipment from the leasing company on 1st October 2010).
b) The landlord says that the leasing company contacted him. We have email from leasing company that says the landlord contacted the leasing company, said the equipment was damaged, that he had no knowledge of our whereabouts or contact details and that he was disposing of the goods. The leasing company then let the landlord purchase the equipment extremely cheaply.
c) He also told the leasing company that he was clearing out the goods (even though legally we had ten days to clear the goods before giving the landlord the right to dispose/store them).

Obviously the main issues are that the leasing company seems to have breached contract by not giving us until 13th October, and that the landlord seems to have committed 'fraud' by telling the leasing company that he did not have any contact details for us (even though he emails and telephones us all the time and has our address). He must also have opened our post as that is the only way he would have known who the leasing company was.

Any views on this, what rights do we have and what should we do. The equipment is not cheap stuff and we have pottentially lost out here financially by not being able to purchase the goods either at the cheap rate that the landlord got or the amount that was outstanding on the lease.

Thanks in advance.
 

Spongebob

Free Member
Dec 9, 2008
2,271
1,169
Bikini Bottom
Rule no1 in business. All landlords are **Profanity removed** and must not be trusted!

Your mistake was in not removing the valuable equipment first. I would have made sure that I cleared the entire premises on the first day.

I can't really see what you can do - you've been stitched up good and proper. You could see a solicitor and talk about suing but it will almost certainly cost you more money than you are likely to win.

Possession is nine tenths of the law. You should have kept the goods in your possession. Put it down to experience.

Sorry.
 
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Miles Shelbourne

Free Member
Jan 10, 2010
24
4
Cambridge
Clearly you may have a right of action against the LL, and possibly against the leasing company (there is not enough information here to be clear at this stage), so then you have to consider the commercial position; that is to say you have to determine how much money you have lost as if it is not a lot then commercially it may be pointless to sue, and you may end up throwing good money after bad.
 
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