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What are my rights against a commercial property management company involving a receivership contract termination?

As of 10/1/09 my company was under contract to perform lawn services for a commercial property in a local shopping center. We received notice a few days later that the contract was cancelled due to an owner receivership termination. I already invoiced on 10/1/09 for services to be done this month, based on a 12-month contract rate, and received payment already. Now I want to bill 100% for the services completed and will include an adjustment for the monthly contract rate. I think that's fair. Balance owed is $230. Who should receive the final bill, the management company under contract or the new nationwide management company that took over the property?

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Attorney answers (1)

Reputation Level 6
It really depends on what type of arrangement or contract you have with the commercial property owner. Many contracts automatically terminate when there is a change in control of the company or other important corporate events occur. So depending on the contract, it may have validly automatically terminated upon the "owner receivership termination." I am not entirely sure of your question, but it seems to me that everything you worked on for the company, through the date of termination, would be validly billable to that company (unless your contract says otherwise). I believe you should send your bill to the original company (i.e., the one you have contracted with) since they are the ones who are legally obligated to pay for all services rendered under the contract before it is terminated (unless the contract says otherwise). I hope that gives you something to go on. Please contact me if you require any follow up. Thanks.

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