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Leasing Agreement Issues Breaking a Lease

Discussion in 'Commercial Landlord & Tenant Issues' started by NimbyT, Jun 23, 2017.

  1. NimbyT

    NimbyT Law Topic Starter New Member

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    Hi so I'm having a problem within a data center with a licensor. I signed a 3 year leasing agreement and I went in default on my payments. I owe about $13,000 on my leasing agreement and my services to the facility have been suspended. The thing is I have over $30,000 worth of assets in the facility that they will not let me get.

    Section 1.5 of the MSLA says that if my services are terminated I am able to get my hardware out of the facility but they are refusing to give me the equipment until I pay the $13,000 which I cannot do because I have no revenue from my business coming in due to them turning off the power to all of my equipment and my clients equipment.

    They are basically trying to hold my hardware ransom and keep my account on suspension so I cannot access any of my hardware. The only way to access the hardware they told me would be to terminate the services with them which they would remove all the discounts they gave to me and my account balance for the 3 year lease would be about $512,000.

    So I am trying to figure out what I should do my last email from them stated:

    Show Spoiler

    Section 1.5 comes into play when you cure the breach. As I’ve said, you cannot willfully perpetuate a default in an attempt to circumvent the access restrictions.


    I am willing to relieve the access restriction to the extent your customers seek to claim their gear and can prove ownership and will execute waivers and releases.


    Have you made arrangements to cure your payment breach? In the alternative, we are willing to help your clients, but we cannot do so if they are not willing to help themselves.


    Thanks.


    In regards to the above statement they are basically trying to go against the MSLA and tell me that I have to pay in full before accessing the facility in terms of sections 1.5 of the MSLA. I'm not sure what I need to tell them but the MSLA says once the services are terminated I have the right to remove my hardware ASAP. It does not say what overrules what but I thought the MSLA overrules anything else. Am I wrong?

    They do not have any sort of ransom clause in the MSLA it says nothing about them having rights to hold my hardware for ransom or anything like that. It says nothing about having the account up to balance before getting my hardware.

    Section 1.5 of the MSLA specifically states if the account is terminated then I have "The client must remove all hardware from the facility".

    I have attached the portions of the MSLA that refer to this. If anyone can help me out id greatly appreciate it. I am not trying to screw anyone over in this aspect but my hardware is what makes money to pay them and they did this so sudden.

    If anyone can help I can send the full MSLA to them.

    If someone can also help me out with any documents I can send them in order to get my hardware out of the facility or something to have them follow their MSLA because I don't think they are in the right withholding my hardware against the MSLA.

    Thank you.
     
    Last edited: Jun 23, 2017
  2. army judge

    army judge Super Moderator

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    You might be able to file bankruptcy.
    That could be somewhat helpful.
    Talk to a couple of local attorneys about your issues.

    Another route might be to use the civilian route of recovery.
    Again, a lawyer locally is the best person to consult.
    Take all of your documentation when you visit them.

    Other than retaining a lawyer, no one can help you.

    You're in some deep poopoo.
     
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  3. adjusterjack

    adjusterjack Super Moderator

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    That might not have anything to do with you being in default.

    I suggest you take your contract to an attorney and review your options.
     
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  4. NimbyT

    NimbyT Law Topic Starter New Member

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    Thanks for the help what type of lawyer should I be looking for in this matter?
     
  5. adjusterjack

    adjusterjack Super Moderator

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    One that does business law, contracts, real estate, landlord tenant.
     
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  6. NimbyT

    NimbyT Law Topic Starter New Member

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    Thank you for the help will look into this.
     

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