Business Contracts Breached Lease Termination Agreement

[Matthew M]

Jurisdiction

California

Hello,

Recently I discovered a lawsuit was filed against my company by our previous commercial landlord. We began to fail to pay rent halfway through COVID due to government restrictions (lockdowns by state, LA county, etc...). However, for the entire first half of the COVID lockdowns we continued to pay rent in good faith. Over the course of a year we wrote our landlord multiple letters asking for forbearance, deferment, etc... Ultimately we were able to bring them to the table for them to tell us we needed to pay the entirety of the remain lease balance if we did not want to remain tenants.

Feeling backed against a wall and with no legal advice (their lawyers drafted the agreement and I with my high school level education entered into it to the best of my ability, on behalf of our company), we entered into a lease end agreement. We unfortunately could not make good on our financial consideration (payment plan) to pay off this balance. Our industry has also been stalled by the SAG/ WGA strikes preventing productions.

Our landlord is now suing us for breach of this agreement and we don't know whether it's worth discussing alternative with their attorney, begin to prepare a legal defense, or what route to take. A judgement in the amount they're seeking would force our business into insolvency.

Thanks in advance!

 

[Zigner]

What is the legal structure of "your" company and what is your position in the company.

It seems to me like the LL is tired of negotiating and expects the company to abide by the agreement(s) that were entered into. I don't actually see a question from you, in much the same way that I don't see a defense. In fact, after the company responds to the admissions, I don't even see this going to trial, since the company has no apparent defense. The LL's attorney will likely ask for (and be granted) a summary judgment.

 

[army judge]

Feeling backed against a wall and with no legal advice (their lawyers drafted the agreement and I with my high school level education entered into it to the best of my ability, on behalf of our company), we entered into a lease end agreement.

If A person doesn't FULLY UNDERSTAND what said person is being asked to sign, that person shouldn't sign the document.

Furthermore, the other party's attorney isn't your attorney.

Just as no one participating on this site can provide you with legal advice, neither can the opposing party's attorney.

If you require LEGAL ADVICE, it can ONLY derive from an attorney you've RETAINED to be YOUR attorney.

Yes, that means you've agreed to pay the attorney and have received a written retainer agreement, as in contract.

 

[army judge]

Our landlord is now suing us for breach of this agreement and we don't know whether it's worth discussing alternative with their attorney, begin to prepare a legal defense, or what route to take. A judgement in the amount they're seeking would force our business into insolvency.

The assistance you REQUIRE isn't free.

It is far beyond the time for YOU to hire an attorney to assist in limiting/lessening your damages.

If you don't hire an attorney, you're going to receive a very devastating result!

 

[zddoodah]

Feeling backed against a wall and with no legal advice (their lawyers drafted the agreement and I with my high school level education entered into it to the best of my ability, on behalf of our company), we entered into a lease end agreement.

Can you please clarify what you mean by "my company," "our company" and "we"? I'm going to assume "my company" and "our company" are the same thing, but what I'm wondering is whether this company is a corporation or LLC (or other type of artificial entity). If not, what sort of business entity is it? Also, was the company the only named tenant on the lease, and did you, as an individual (or any other individual), personally guarantee the lease? If you or someone else personally guaranteed the lease, were you and/or that other person also a party to the termination agreement?

Our landlord is now suing us for breach of this agreement and we don't know whether it's worth discussing alternative with their attorney, begin to prepare a legal defense, or what route to take. A judgement in the amount they're seeking would force our business into insolvency.

Well...no one here is going to know because no one here has the relevant factual information.

When you say that the "landlord is now suing us," who exactly are "us"? Your company? You personally? Both? And has the lawsuit actually been filed (in the Los Angeles County Superior Court, I assume)? Has it been served on all defendants?

How much money is the landlord seeking? Can "we"/"us" afford to pay that amount or to propose a reasonable payment plan. Do "we"/"us" have any defenses to the claim?

If you want to answer my questions, I may have some further thoughts. If not, all I can do is suggest you seek a consultation with a local attorney.