Help with commercial lease buy-out problem

[salvatore1]

What is the name of your state?Ohio

Long story short:
I am a private optometry practice in a large downtown mall
Began lease 3/2004
Have had poor performance since opening, less than $80 sq ft
I asked to have the space marketed to let me out of my lease Sept 2004
Now over a year later and no tenants found for my space

I found out that a large section of my patients, >60%, will be changing to another insurance plan which I cannot join so they will not be coming in 2006

Tell manager about my fears that 2006 will put me in bankrupcy and she says I need to send a proposal for buy-out directed to her and another guy who is marketing director of the mall

Attorney sends letter to them both, says I'll pay all rent up to Dec 31, 2005 and pay $20k buy-out and need a reply by Nov 15 2005.

Nov 15, 2005, I go to meet with the manager who says, and I quote, "I just got off the phone, and THEY agreed to your proposal but need you to stay until January 31, 2006." She then tells secretary,"We are going to be doing a LAG for <me>" Tells me it will be sent to "legal" and that my attorney should get paperwork soon.

Nov 20, my attorney says she hasn't gotten paperwork

Nov 27, no letter yet, and I run into the manager in the mall and ask about the delay. She says its because of the Thanksgiving holiday and that I should get paperwork within a week

Nov 30, my attorney calls and says that the manager called and said the "COMMITTEE" rejected my offer unless $100k buy-out.

I,nor my attorney, had ever heard of a "committe" needed to review the proposal, I thought she said "they" accepted the offer 2 weeks ago.

Problem now because I had already told my staff we were closing Jan 31, 2006 and had been giving any new patients their records and telling them that if they needed anything, we would be offering a phone service for prescription or warranty issues after Jan 31, 2006.

I don't have $100k to buy-out, and fear staff is not gonna stay after that date because of job security, also patients are usually from the same employeer offices and word has spread by now that we are closing, so I doubt many will be coming after Jan 31,2006 for services for fear we are might close at anytime.

Question::::

Because the manager and marketing guy have been our only contacts for myself and attorney, do I have any legal recorse for the fact that I took what she said and acted upon it thinking she was acting as a representative to the large landlord. Can I legally push the "committee" now to accept my offer or sue for damges because I cannot undue what has been done and will have to pay $100k to close the store?


Please help me here, I cannot sleep!!!

If you need more info, please ask.

Regards and thanks for the replies,

EYE DOC

 

[seniorjudge]

Because the manager and marketing guy have been our only contacts for myself and attorney, do I have any legal recorse for the fact that I took what she said and acted upon it thinking she was acting as a representative to the large landlord. Can I legally push the "committee" now to accept my offer or sue for damges because I cannot undue what has been done and will have to pay $100k to close the store?


You certainly relied to your detriment on a verbal statement, but, without knowing all the facts, no one can really help you here.

What does your lawyer say about this?

 

[salvatore1]

She says she thinks it might be worth a try, to see if a letter addressed to the two of them, to that fact, would create any kind of response. I just feel like I have to grasp at any possible way of completing this lease termination. I have always paid the rent and even made a fair offer to buy-out thinking it would work in my favor, but i know that when it comes to the "books" of the offer to end my lease, the LL can do whatever they want.

I just thought this was a little stronger arguement because she and the manager are who requested the proposal. I think anyone can see how I would assume it was a done deal.

These multimillion-dollar real-estate-holding landlords do not care about going to litigation, I am sure they have a great team of lawyers working around the clock, so is their anything else I might do to sway an agreement my way?

 

[salvatore1]

As a follow-up :

The manager does not deny that she stated the agreement was accepted and my attorney says that an important part of the verbal agreement was that it was acceptable with a provision to stay till January 31,2006. I accepted this counteroffer verbally and was just waiting for the proper forms to sign.

So, if the parties do not deny what is spoken in a verbal agreement, is thus easier to make valid since the burden of proof is eliminated?

Thanks. for any replies.

 

[HomeGuru]

As a follow-up :

The manager does not deny that she stated the agreement was accepted and my attorney says that an important part of the verbal agreement was that it was acceptable with a provision to stay till January 31,2006. I accepted this counteroffer verbally and was just waiting for the proper forms to sign.

So, if the parties do not deny what is spoken in a verbal agreement, is thus easier to make valid since the burden of proof is eliminated?

Thanks. for any replies.

**A: yes, it may be a little easier. Did your attorney advise you of the statute of frauds with respect to the purchase and lease of real property?

 

[salvatore1]

**A: yes, it may be a little easier. Did your attorney advise you of the statute of frauds with respect to the purchase and lease of real property?

Nothing about this has been mentioned - Can someone elaborate please?

 

[salvatore1]

Update

the landlord accepted my second proposal !!! I am now free of my 10 yr lease and have definitely learned a valuable lesson about the seriousness of a signature. Be sure to understand anything you sign my friends, you may live to regret it.

Thanks for you input everyone.