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Lawsuit and Countersuit to Dadson Washer Service
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There are two clauses in their lease agreement that got us in trouble. Beware of these two sentences:
1st clause, regarding automatic extension and renewal:
It is further understood and agreed by and between the parties hereto that this lease shall be renewed from the date of its expiration for two (2) additional terms each equal to the original term unless LESSEE gives LESSOR notice ... at least 90 days prior to the end of the then-current term of LESSEE'S intention not to renew this lease.
If the term agreed to is 5 years, then automatically adding two additional terms equals 15 years with the company! It can only be cancelled by Dadson (labeled Lessee in the agreement). Which is not fair, because we, the Lessor, who rented their machines should have a right to cancel, but we signed to essentially lose our right to immediately stop using their machines with this clause.
2nd clause, regarding right of first refusal:
Right of First Refusal
Upon expiration or termination of this least term and any renewals and extensions. LESSEE shall have the right of first refusal to meet any bone fide offer to lease the LEASED PREMISES or sell laundry equipment for use in the LEASED PREMISES made by any other person or entity on the identical terms and conditions of that offer. LESSOR shall provide LESSEE with a copy of the written offer to least the LEASED PREMISES or to sell coin operated laundry equipment for use in the LEASED PREMISES within thirty (30) days of receipt of said offer by LESSOR. LESSEE shall have thirty (30) days after receipt of said offer in which to exercise right of first refusal. LESSEE hall not be required to lease, sell or provide any appliances, vending equipment or services other than coin-operated laundry equipment in order to exercise its right of first refusal.
We did not like their services and did not want anything to do with their old machines and not churning a profit, and they had poor customer service. We didn't want anything to do with them and we rented new equipment after so many years from an old agreement. Apparently we signed to essentially lose our right to immediately do business with a more reputable service and we got sued for not providing them the right of first refusal.
We had to hire a good lawyer ($400/hour) to countersue with a lawsuit. Since they didn't want to go through litigation, they settled the lawsuit. We don't want anyone else to go through this either, as a small business owner, we couldn't afford to, and they know small businesses rarely hire lawyers and they were hoping we'd roll over, but we had to fight even if it cost us a few thousand dollars. Once they realized we were willing to fight with good lawyers, they settled.
If you currently have a lease or will lease with this company, discuss it with a good lawyer and beware of the automatic renewal, extension clauses,that are unfair to you, and essentially strip you of your rights should their company not provide adequate services. The lease of laundry room space essentially made them tenants of your laundry room space, but you are expected to pay them monthly ($24 per machine) for each equipment because they say you are collecting the money from the machines and they are essentially tenants leasing the space and providing the equipment. Sounds purposely complicated for the simple process of trying to produce income in providing laundry equipment to your tenants.
More information about this oppression can be found here:
aoausa.com/magazine/?p=3…
mylawllp.com/laundry
Also do a google search for "Dadson Washer Service" and "lawsuit"
Eliminate the chance of having going to court by not hiring Dadson and do your research to avoid signing and essentially losing your rights for fair practices.
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