Legal Question in Business Law in California

Lease Space Services

I have a contract with a data center that provides internet connectivity to my computer servers which are housed in the data center. There was a dispute around the monthly charge and it appears we were overcharged, so we didn't pay the bill. The center is now holding my equipment and won't allow me to enter and remove it from the premises, until the bill is paid. There is nothing in the contract that gives them that right for non-payment. Is it legal for them to hold my euqipment?


Asked on 4/17/07, 6:51 pm

2 Answers from Attorneys

Jim Schaefer Schaefer & Associates

Re: Lease Space Services

As your question is framed, it seems that the data center is wrongfully withholding your personal property (Chattel) and you have various remedies against them.

I am assuming that you want the return of your property and not monetary damages for purposes of this answer.

First I would hire an attorney to handle this matter for you and not handle this matter yourself because if you want the property returned it is not simply a small claims matter.

The first thing that should be done is that a letter should be written to the data center stating that they are wrongfully withholding your property and not allowing you to remove it from the facility. Make sure that you claim ownership of the property in the letter. In the letter give them a short time frame to respond in writing. Also state that you may seek to purchase or rent other similar equipment, if readily available, at their expense if they do not return the property immediately to you. Make sure the letter is sent certified with return receipt so that you have proof it was sent to them.

Assuming they do not allow you to remove the property after the letter is sent, then an attorney would file an action for monetary damages and based on replevin. Replevin is where a court orders the data center to return the personal property to you that is being wrongfully withheld. There may also be many other causes of action that would be filed including breach of contract.

In the short term you may try to rent similar equipment at the data centers expense after the due date to return the equipment listed in the letter and seek reimbursement and damages from the data center for these costs and expenses in addition to the return of your equipment under replevin.

I hope this brief answer helped you and if you seek representation then please do not hesitate to call our office and ask for me or email me.

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Answered on 4/18/07, 1:12 pm
Mark Muntean Mark Muntean, Attorney at Law

Re: Lease Space Services

Neither you nor the data center should be taking matters into your own hands. You may not have had a right to withhold payment when you were overcharged and they probably are wrong to hold your equipment hostage. If you can find someone to mediate in between you might get this taken care of quickly.

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Answered on 4/17/07, 7:00 pm


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