Enforcing Equipment Leases Through Replevin in Commercial Settings
Equipment leases provide an appealing income stream for equipment owners while granting commercial businesses a way to use this equipment without the upfront expense. As is the case with any other rental, a lease outlines the rental terms and both parties’ obligations. When a borrower fails to make payments or otherwise does not uphold their end of the agreement, the lender may have the option to recover their property via legal means.
In these situations, having the proper legal guidance is essential. Call Crawford & von Keller at 803-790-2626 to set up a time to talk about your case.
What is Replevin?
Replevin is a procedure that returns seized or wrongfully retained property to its rightful owner. It’s different from repossession in its goal. When you repossess property owned by a debtor, you do so in order to sell it and pay off a loan. When you seek relief via replevin, you take back your own personal property.
In North Carolina, the rightful owner of equipment can reclaim it. The owner must file a replevin action through the court; the rightful court depends on the value of the property and which court has jurisdiction. This is typically the court in the county where the dispute occurred or where the borrower lives.
How to Recover Property Through Replevin
Following the right process ensures that unnecessary errors and delays do not keep you from recovering your property. By working with a replevin attorney in North Carolina, you can draft your complaint to submit to the court. Be ready to provide a copy of the lease agreement, documentation of all payments (and missed payments), proof of the value of the property, and evidence that the property is yours.
After the complaint has been filed, the court will review the complaint and attached evidence. If you successfully prove your claims, they may require the other party to immediately return the leased equipment to you. This can grant you immediate relief from the financial stress of withheld property, as you can then lease it to a party who will fulfill the terms of the lease.
Potential Challenges and Considerations
Be ready for the other party to challenge your claim and try to prevent the return of your equipment. Someone who is willing to withhold property from its rightful owner even though they know they have not paid for it is also likely to drag the process out through the courts. First, the other party may claim to interpret the lease terms differently than you. This is why comprehensive leases without any vague language are absolutely critical.
There is also a possibility that your equipment will be returned to you damaged or completely unusable. This is essentially the equipment equivalent of an evicted tenant pouring concrete down the drains of a home before they leave it. You’ll likely need to seek relief via the court again to be compensated for the damage to the property and the loss of income resulting from it.
The Importance of Legal Counsel
Whenever you are dealing with leases and expensive equipment, you should have legal representation before issues arise. It is far easier to prevent problems via detailed and enforceable leases than it is to resolve them after the fact. Your lawyer can help draft your complaint and ensure that it meets the court’s standards. They can also anticipate potential issues caused by the other party and prepare for them.
Let’s Talk About Your Legal Options Now
The team at Crawford & von Keller knows how illegally retained equipment can damage your finances and your business. To discuss your options, call us at 803-790-2626 or fill out our online contact form.
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