St Louis Business Repair Questions
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
St Louis Business Repair Questions
Hello, Im sort of in a dilemma. I recently bought a business from someone, so I
do not have a new lease on the building. It turned out the before owner did
something with the heat making the sprinkling system burst. Basically the old
owner threw me under the bus. Now the landlord is giving me three options. 1. I
move out. 2. I sign up a new lease with added 100 to cover repairs 3. I get an
attorney to make the old owner pay for repairs. Now my question is which option
should I go with? My trouble is that why should I be responsible for paying for
the repairs? Isnt it by law that the landlord or the one that did the damage pay
for the repairs?
Asked on March 13, 2017 under Real Estate Law, Missouri
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
The landlord is not responsible for damage done by a tenant: the tenant is responsible.
As to whether the old owner or you is responsible, it depends on the following: was the business an LLC or corporation and, if so, did you purchase the LLC or corporation? If you did, then you--or more properly, the business--are liable for it, because the tenant was not the prior owner or you, but the LLC or corporation, and that LLC or corporation is still liable for the damage it did as a tenant to the landlord's property. The fact that you now own the LLC or corporation does not change the LLC's or corporation's liability; therefore, the landlord could come after business (the LLC or corporation) for this. (Note that you may be able to sue the former owner for fraud, for hiding a major cost or liability from you, to recover amounts that you or your business have to now pay out).
On the other hand--
* If the business that had been renting/leasing had been an LLC or corporation, but you did not buy the actual LLC or corporation (you just bought the assets: e.g. name, goodwill, equipment, inventory, accounts receivable, customer list, etc.), then you are not liable: the LLC or corporation, which is a separate legal person, is still liable for its own debts, and the landlord could try to sue it.
* If the business had been a sole proprietorship before you took it over or bought its assets, then the former proprietor--that former owner--is liable for any damage he did; the landlord can go after him, not you or your business.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
The landlord is not responsible for damage done by a tenant: the tenant is responsible.
As to whether the old owner or you is responsible, it depends on the following: was the business an LLC or corporation and, if so, did you purchase the LLC or corporation? If you did, then you--or more properly, the business--are liable for it, because the tenant was not the prior owner or you, but the LLC or corporation, and that LLC or corporation is still liable for the damage it did as a tenant to the landlord's property. The fact that you now own the LLC or corporation does not change the LLC's or corporation's liability; therefore, the landlord could come after business (the LLC or corporation) for this. (Note that you may be able to sue the former owner for fraud, for hiding a major cost or liability from you, to recover amounts that you or your business have to now pay out).
On the other hand--
* If the business that had been renting/leasing had been an LLC or corporation, but you did not buy the actual LLC or corporation (you just bought the assets: e.g. name, goodwill, equipment, inventory, accounts receivable, customer list, etc.), then you are not liable: the LLC or corporation, which is a separate legal person, is still liable for its own debts, and the landlord could try to sue it.
* If the business had been a sole proprietorship before you took it over or bought its assets, then the former proprietor--that former owner--is liable for any damage he did; the landlord can go after him, not you or your business.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.