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Question

I am a restaurant owner. I had sublet a portion of my shop to a espresso cafe. The cafe has not paid rent in several months, I gave the owner notice and changed the locks when there was still no payment. It has been a week now, I still have not heard from the cafe owner. What are my rights as far as her equipment and business property? I am in CA

Submitted: 18 days and 6 hours ago.
Category: Legal
Value: $38
Status: CLOSED
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Optional Information

State/Country relating to Question: California

Already Tried:
gave her many warnings prior to changing locks. Left many messages since locks have been changed.

Posted by D. WINOGO ESQ. 18 days and 6 hours ago.

Answer

Currently, when a tenant's personal property is left at the premises after the termination of tenancy, the landlord must provide an 18-day notice (or 15 days if personally served) to the tenant or other owner of the personal property. After the waiting period expires, if the landlord reasonably believes that the personal property is worth less than $300.00, he may dispose of it as he wishes. However, if the value of the personal property is greater than $300.00, a public sale must be noticed and held. From the proceeds of the sale the landlord may only keep allowable storage, advertising and sale costs. The remainder must be turned over to either the tenant, the owner of the personal property or, if unclaimed, the treasury of the county where the sale took place.

If a commercial landlord reasonably believes that the value of the abandoned property is the lesser of $750.00 or $1.00 per square foot of the premises rented, the landlord may, 18 days after giving the appropriate notice to the tenant by mail or 15 days after personal service, keep the property for his/her own use or dispose of it in any other manner.

18 days and 6 hours ago.

Reply

It gets a bit more complicated. The cafe is owned by 2 people. 1 owner is no longer actively involved in the business and has offered to show me how to run the machinery. The amount owed by the business is around $3500. Two months rent and utilities. The equipment is worth around that much, is there a way for me to operate the business ?

Posted by D. WINOGO ESQ. 18 days and 6 hours ago.

Answer

No, you cannot operate the business. You would have to consent from both owners to operate the business and keep the profits, otherwise, you would subject yourself to litigation from the owner who does not want you participating in the business. If both partners/owners agree, then you can do so.

18 days and 5 hours ago.

Reply

So, if I got a letter from both owners stating that I could now operate the business under my own, it would be ok to do so? Otherwise, I need to hold onto the property until she chooses to do something about it and she still owes me money? How do I go about collecting the money she owes me?

Posted by D. WINOGO ESQ. 18 days and 5 hours ago.

Answer

To collect the money she owes you, you would have to sue her for breach of your lease/contract.

 

Otherwise, if you want to operate the business on your own, then you would need the consent of all owners/partners in that business in order to protect yourself.

 

If you decide to do neither of the above, you would have to send the owners a certified letter informing them that they have abandoned the property and that if they do not come to collect their property and they do not pay the back rent owed, you will recover the space and sell the property.

18 days and 5 hours ago.

Reply

/Thank you.

Accepted Answer

My pleasure. Good luck in your endeavours!

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Expert: D. WINOGO ESQ.
Pos. Feedback: 98.5 %
Accepts: 
Answered: 11/4/2009

Attorney

8+years of experience in all matters of civil litigation and Hearing Officer/Arbitrator

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