Help required, in trouble with commercial lease

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leroy67

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Wondering if you could help me out here please. Signed a commercial lease jointly with another individual initial (sole traders) three year term with break clause after 18 months (March 2013), cut a long story short business folded and we moved out once we realized it was not tenable to allow LL to re let unit. Assisted LL in finding new tenant also. New tenant insitu since October12. LL now coming after us for non payment of rent while we were not in unit from May to October, rates etc total circa €21k. I personally don't want a judgement against me and may be able to borrow 50% of this amount from family, friends however other party refusing point blank to pay up as no assets or income and saying LL can bring him to court. I have mortgage on Family home and up to eyes in personal debt accrued trying to keep business open. Have contacted Co.Council and they are open to repayment plan on rates liability but LL playing hardball on other issue, want to be fair and pay my half, how can I impress upon LL my willingness to do a deal and what if he won't agree?
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@leroy67 - as mentioned in a prevous reply and your reponse - you are ruling out the potential escape hatch of 'equitable estoppel'. Never rule out escape hatches!

Are you clear that there is 'joint and several' liability? There may not be.

The lease would need to be examined to see exactly what your liability is composed of. What is the service charge?

Assuming the landlord has a clear cut case - and there are never clear cut cases - there would be little point in pursuing your associate if he is aware or believes him to have no assets.(are you sure?).

The only touch is you - if we assume that you are joint and several - you need some shrewd negotiator to act for you as you will have the 50% on the table in a blink of an eye when you should be starting at NIL. He wil incur substantial legal costs and he will likely be advised to reach a settlement. If I were him I would grab the 50%.

Its clear you are totally honest. Do yourself a favour and drop into FLAC. Bring your lease and details with you.
 
Thanks Wizard Dr, always has been my problem I'm afraid have always tried to behave in ethical manner in all dealings, I was under the impression that no solicitor would defend me as I am a debtor?
 
If you can borrow €10k from relatives, you can borrow €1k first to take legal advice.

The landlord had to pay his mortgage and expenses while you were not paying rent due to him, so I can see why he wants his rent. He probably has his bank on his back. It is likely that you will have to get a judgment against you unless you can your solicitor or someone else to argue on your behalf.

If I was a creditor and I realised that a debtor was insolvent but was prepared to borrow half the money from relatives, I would grab it.

Do up a statement of affairs. Your assets and your liabilities and send them to the landlord. His solicitor will probably advise him not to spend money trying to get blood out of a stone. But if you just abandoned the property without discussions with him, he might be more motivated by anger than by good business practice.
 
Thanks Brendan, property wasn't abandoned ,gave due notice to leave and appreciate where LL is coming from. I am not trying to walk away from my responsibility, just looking to see whether my proposal would sound reasonable. Am not in a position to cover all the debt however will cover my part
 
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