It was April 25th, and he was just about to finish up a meeting with a client at Sightglass on 7th Street, his favorite coffee shop in San Francisco. The form of Regus’s premature late notice is arguably an anticipatory breach. On 9 November 2015, together with Regus Suntec City General Manager, I have viewed and agreed on the price for the specific room (i.e. No. Thanks again for everything--I'll be happy to recommend your services!" As a Veeto member, Hannah sent her notes from step 1 to Veeto; Veeto's algorithm matched her complaint data with a legal demand letter crafted by Veeto's legal team; Veeto's app generated and sent the letter to a Regus VP; Veeto confirmed the letter's receipt; and within a few days, Regus agreed to release Hannah from her lease agreement exactly as her Veeto-generated letter had demanded. Speaking of confidentiality, section 2.9 is a real gem. About Regus not being fair. Big companies like Regus prefer arbitration for a number of reasons, all because these reasons conspire to deter people from bringing a claim in the first place and give Regus an upper hand at trial should a member bring a claim against Regus anyway. I could go on opining why arbitration is generally favorable to big companies and resentful toward consumers, but instead I will just cite the secretiveness of arbitration: companies like Regus like the fact that arbitrations tends to be confidential, so that if some anomalous consumer does manage to win a case, no one else can learn from it because the arbitration proceedings are required to be held in strict confidentiality. But the office manager told Hannah that he could not offer any sort of downgrade, which meant Hannah would be required to pay $3,861 for the remaining duration of her Regus lease that she would not use. that any breach by You of this clause shall constitute a material default, entitling Us to terminate Your agreement without further notice. Further, if it turns out that Regus suspended your services based on the false allegation that you remained past-due, then you might have another argument for breach of contract, as, you were not late--and therefore held up your end of the bargain--yet they suspended your services--and therefore failed to hold up their end of the bargain. He replied to say that he was too busy for a phone call and that Hannah should just ask her question via email (he was printing stuff for other tenants, most likely). You could argue that misrepresentations were made during the contract negotiations, and therefore you would never have formed the contract but for the fraud. If the answer is yes, then according to this section, Regus could arguably terminate the lease immediately, and Hannah would still be liable to pay the remaining $3,861 due under that lease. What if the member's lease budget were "no longer available," and he was not therefore able to make his rent payment? It is basic legal doctrine that when two people sign a contract under which one person agrees to pay money in return for the other providing a particular service, if the second party fails to provide the service while the first party continues to pay as agreed, it is generally accepted that the first party has the right to void the contract with no penalty. Case Number (Subscribe to View) Filing Date. Regus received the letter and allowed me to cancel my agreement with them! The Regus managers “in charge” are suddenly “un-available” to solve any problems and the client is “dragged over the floor” for months with “excuse letters” but no improvement of service takes place. It was supposed to be a happy time. and the Customer in relation to a Business Centre. The email said: “Your account remains overdue.” He thought that was strange, since he did not remember receiving any prior notices of upcoming or late payments. Document gripes, as Hannah did by keeping notes on what I called strikes. There are not enough conference rooms and day offices available to book. Talk with one of our Regus experts to learn exactly how you can resolve your issues and leave Regus. Case Number (Subscribe to View) Filing Date. You should act fast, but carefully. Cancellation of contracts are simply ignored and requests refunds due to breach of contract by the Regus Group are ignored too. Download Docket Print Docket Case Overview. Compensatory damages are damages for a specific amount of money intended to compensate the non-breaching or innocent party for losses from the breach. A court case would be inevitable, and I cannot see the landlord loosing (unless new information comes to light). Additional principles of "reasonableness" exist at common law. If someone, for example, is paying $500 per month in rent, that is an extra $1,500, or an extra 25%, than the person had probably budgeted for office space. Breach of Contract Disputes This is a breach of contract, fraudulent inducement, and fraud action in which Plaintiff Regus Management Group LLC ("Regus") moves, pursuant to Federal Rule of Civil Procedure 12(b)(6), to dismiss the declaratory judgment counterclaim of Defendant International Business Systems Corporation ("IBM"). If you fall behind with rent/deposit or don't pay by the required dates then that means YOUR in breach of contract and the landlord may also add his costs to recover the money you owe. It is dirty, and there is no legitimate reason for it other than for Regus to milk people for everything they can as they are trying to leave. Epcot in turn brought a counterclaim against Regus seeking: (i) damages for loss of profits; (ii) loss of the opportunit… Option # 1: Breach of contract by Regus If you read your Regus contract, then you will see that it references either “terms of service” or “house rules,” depending on where you are in the world. And again, there is just no legitimate reason for it. JANE BOYLE, District Judge . Section 2.5 seems to say that in the event that a bank run happens, and Regus is not able to provide the service for which it signed a contract to provide, then there would be no consequence for either party. Case Details. These are Regus’ House Rules which may change from time to time. Not every term is taken literally, however. He said the new policy is that they have to knock to notify the client of the guest., On November 10 I tried booking day offices which I had purchased from [the office manager]. In addition the judge held that Clause 23 amount to a total exclusion of any remedy at all and therefore was unreasonable and unenforceable under UCTA. With this in mind, consider whether you prefer the more aggressive approach--which is to terminate immediately--or the safer approach. She had been in the lobby waiting for our 10:30 appointment since 10:20. Our lawyers are happy that Regus are unquestionably in breach having misrepresented the contract and induced us to sign. Ethical Trading: Both We and You shall comply at all times with all relevant anti-slavery, anti-bribery and anti-corruption laws. But, of course, we have an outright statement in this Regus example. The Regus Automatic Renewal Clause (and How To Avoid It), We Believe That Helping Is The New Selling. This is probably the right question to be asking, not because we expect Regus to answer it, but because the questions assumes what is probably the actual answer. This was an email saying that service had actually been suspended, after the recipient failed to make that allegedly past-due payment after 24 hours. We are walking away from Regus as one on the luck ones. Weird, right? He opened a browser window and logged into his MyRegus account to check his account balance and payment history, and what he found was weird: all payments had been paid on time, and his account balance was $0. Compensatory Damages. I could not book, On November 10 [the receptionist] and [the receptionist's sidekick, I am guessing] complained to me that I was asking them to print too much and it was hard for them to drop everything for me and could we please set a turnaround time. It leases virtual offices to business owners who need things like a business address, a place to occasionally meet with clients, and a receptionist to answer the phone. In Hannah's case, it meant that even though she knew she had a legitimate claim against Regus that she felt she could win on her own, she was unwilling to fight that fight herself because she did not have time to argue back-and-forth with a slippery company like Regus. Thus a threat to suspend service in 24 hours threatens to violate the terms dictating notice requirements. We just sent you an email. By asking for assurances, you risk Regus giving them to you, which would wipe out your reason for terminating. We think they are. The air-conditioning in the offices was defective but, despite numerous complaints from Epcot, Regus did not remedy the problem. Your services may be suspended, Fight-or-flight mode kicked in and instantly chased away the prior good vibes. Anyone can follow these five steps if you have enough time to spare and sufficient confidence that spending that time will actually give you the outcome you desire--and really, that just means confidence in yourself, to endure and overcome legal conflict. On the 25th hour, if Regus has not responded with written assurances that it does not intend to suspend your service, then you would terminate immediately. This is bad for Regus for four reasons: Run a free Regus Contract Analysis with one of our Veeto Experts and see how you can leave Regus now. Nevertheless a clause which attempts to leave a customer of whatever type without a realistic remedy for a serious breach of contract runs the risk of unreasonableness (Regus (UK) Ltd –v- Epcot Solutions Ltd) 12. Offer expires 08/31/2014. and the Customer in relation to a Business Centre. His client returned, chatted for a few more minutes, and then said goodbye. These are Regus’ House Rules which may change from time to time. The judge found that the air-conditioning was defective and that Regus was in breach of contract. Based on the typical set of facts in Veeto cases, public lawsuits make companies like Regus look really bad in public (for example, after reading this, are you more sympathetic to Regus or Hannah?). Again, one-sided contracts deserve the characterization "unfair" when there does not seem to be a better word for them. Then there is section 2.11, which is designed to dissuade Regus customers from suing in court and instead to pursue legal claims against Regus through secret arbitration. Cancellation of contracts are simply “ignored” and requests refunds due to breach of contract by the Regus Group are ignored too. Regus is fully aware of the army of detractors it has earned itself over the years, spawning sites like Regus-Sucks.com and legal services like Veeto (who handles thousands of Regus cases every month). You can argue that the contract cannot be performed because circumstances have changed. So he asked the area manager for his Regus office. A breach of contract occurs when a party, who agreed to formulate a contractual obligation with another party, does not carry out the intended function of the contract. This does not apply to contract's renewal or expansion. The breach has to be sufficiently serious for you to be able to argue this though and affect the core of the contract, meaning it would have prevented you or seriously affected you from undertaking the services you had paid for. How to get out of your Regus lease, step by step. Regus Vs Wright. Let’s suppose that you want to get out of your Regus contract as soon as possible, and you receive one of these premature late-notices. Had Regus honoured agreed terms we would have remained a Regus client in a smaller offices to term end giving us the flexibility we negotiated and agreed. Meet one disgruntled Regus member who got out of her contract without paying early termination fees She is an attorney in California, and we will call her "Hannah." She figured out how to get out of her Regus lease contract early, which saved her $4,459. Regus brought proceedings against Epcot for the amounts due to it, and in response, Epcot argued that the failure to provide air conditioning amounted to a breach of contract and counterclaimed for loss of profits, loss of opportunity to develop its business and distress, inconvenience and loss of amenity. The judge, HHJ Mackie QC sitting in the London Mercantile Court, found that the air-conditioning was defective and that Regus was thereby in breach of contract. I imagine that this is the question that anyone who is not an attorney might first ask. Damages are monetary rewards or remedies intended to make up for any loss experienced because of the breach of contract. But did she in this case? With a contract like that, it is likely that most people who have a gripe with Regus give up before they even begin trying to break their lease agreement because they suppose the deck is stacked against them. And our theory is that Regus sends these emails, on the 25th of the month, alleging that the customer is late, and threatening to suspend services in 24 hours, because they need the cash more than they need the relationship. Veeto is responsible for 42% of all annual consumer arbitration wins in the US. That time-consuming part. Cancellation of contracts are simply “ignored” and requests refunds due to breach of contract by the Regus Group are ignored too. So it is a risk, but a different kind of risk. Dear Sir, I am totally disappointed by Regus Singapore at Suntec City. The more cash Regus can show on the books now, the more attractive it can make itself appear to a potential buyer. Or invoices are sent from the Regus Group, which are dated months before the service contract was even signed. And there does not. It is too slow to look up each potential day and time specifically.. For obvious reasons, sending a late-payment notice to your customer who is not late is not a good idea if you care about how your customers feel about you. Since July 30, some 97 entities connected with Regus Corp. have filed for Chapter 11 bankruptcy protection, including seven locations in North Texas. Subscription fees are payable in monthly in advance. In a minute, I will illustrate this by showing you what specific actions Hannah took and the result she got (spoiler: she won!). Even short of an outright statement that one party does not intend to perform its obligations, the serious possibility of one party's non-performance and the accompanying threat of injury to the other will, in certain circumstances, necessitate legal protection. If you read your Regus contract, then you will see that it references either “terms of service” or “house rules,” depending on where you are in the world. but not at the expense of staff, “If this is the first email Regus sent me about a payment, why would they use the word “remains?” It just seems strange, as in, there must be some mistake.”. In any case, though, we can identify a minimum notice requirement of 14 days for certain types of notices and 1-month to 3-month notices for other types. When a condition is broken, the contract can be cancelled. Room 923) to be rented for 12 months term contract. It has real costs to Regus tenants, financial and otherwise, because a sudden suspension of the services that customers pay Regus for, including being denied access to your place of business, can ruin the reputation of a small business when their clients show up to a scheduled meeting only to learn that the business has been “locked out” of the office due to being delinquent. This is to confirm that Salveregin Science group, LLC is in breach of its agreement with Regus and currently owes an outstanding balance of USD 994.21 We plan and will initiate legal proceedings in respect of your breach of agreement and will report your total outstanding balance to a credit bureau if you do not get in touch with us without delay. But what is hard to find is someone who actually figured out how to do something about it--how to actually get out of an unwanted Regus contract. You don’t have to be a legal expert to see that Regus’s reported policy of charging its clients add-on fees whenever those clients fail to notify Regus of its errors is crazy. Termination or breach of the contract prior to the The biggest cost at the moment is an office for 5 people that only has 1 person using it. Option # 2: Anticipatory breach by Regus. If a business owner needs to use a Regus resources that he/she contracted for, but that resource is not available, this could have a massive, adverse affect on that business's ability to operate and, in turn, that business owner's ability to earn an income. No. Heck, one former Regus member, Shilo Burt, was so moved to write about her bad experience with Regus that she published it on her personal LinkedIn blog with the title: Regus Review: Stay Away! We obviously need a base for post etc. Why is Regus’s market value continuing to decline? If Regus threatens to cease providing your services, through no fault of your own, this might be grounds for you to terminate your contract immediately on the basis of an anticipatory breach by Regus. Like most adhesion contracts, Regus contracts are littered with ambiguous and contradictory terms, particularly when it comes to cancellation requirements. Although you might understand there to be a relationship between your contract length and the number of days in advance that either party must give the other before terminating, you might be unsure exactly how many days of advance notice apply to you. These House Rules apply between Regus Management Group facilities operating under various names (Regus, HQ, Stratis, etc.) And that is OK. As their conversation neared the end, his client paused and stepped away from the table for a minute to get a quick refill before he headed out. Most legal systems in the world have the concept of "anticipatory breach of contract.". The downside of the safer approach would be that Regus could always give you that assurance, and thereby defuse your basis for terminating the contract and leaving. 1. Regus Vs Wright. I had signed up for a mailbox with Regus.And I had decided I no longer needed the mailbox.I was told that I would get a refund.For the mailbox but I never had got a refund.I had signed up for another membership with Regus.And they had sent me email for a breach of contract.And they had never gave me my money back.For the mailbox and they agreed.To give me a … This practice goes beyond a simple technical error of a billing system. She figured out how to get out of her Regus lease contract early, which saved her $4,459. Office: The promotion applies to any new Equipped Office contract signed for a minimum of 12 months. Justin Regus is the President of Agility Economics, LLC, and a specialist in financial and economic analysis for parties in litigation, transactions, or other disruptive events. Download Docket Print Docket Case Overview. By a number of measures, subjective and objective, Regus is struggling. There is no way for me to connect to the existing printer. Does Regus? She told me if I had contacted them and told them they sent me an incorrect notice before I was disconnected, I would not have to pay the "Restoration Fee. Even though the business is in fact not delinquent, its client does not know that. When Regus threatens to suspend your service in 24 hours, you could terminate immediately on the grounds that Regus’s threat is either an anticipatory breach, a breach of contract, or both. Why is Regus’s revenue continuing to rise? Why not? It is clear that there are a lot of people who feel wronged by Regus. that any breach by You of this clause shall constitute a material default, entitling Us to terminate Your agreement without further notice. Like many big companies in the US who occasionally run afoul of their disgruntled customers, Regus knows that refusing to immediately satisfy a Veeto demand would result in an immediate lawsuit, bankrolled by Veeto. Since July 30, 90 different entities connected with Regus Corp. have filed for bankruptcy across the country. We insisted that we would need to have been informed of such an unusual contract term. There are two general categories of damages that may be awarded if a breach of contract claim is proved. 2.6. 5.4 Subscriptions. Consequently Regus breached contract and we were totally within our rights to leave. Go there, and find the clause that speaks to Cancellation requirements. I have handled thousands of Regus cases, however, and I am happy to share some things I have learned along the way. Even if Regus were to win a lawsuit--which has never happened when Veeto has been on the other side--they would probably have to spend almost as much as the dispute is worth just to hear the verdict.
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