Notification of late payment 5 days before the payment is due? It makes it very hard for me to schedule appointments with my clients because I don’t know when I can get a room. One reason companies like Regus tend to have the upper hand in arbitration is that the cost to file a consumer arbitration might be around $2,500, versus an average cost to file a lawsuit in court of around $200. Cancellation of contracts are simply “ignored” and requests refunds due to breach of contract by the Regus Group are ignored too. 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. Impossibility. 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. Instead the client receives invoices for services he never ever ordered or signed for. Does Regus? Remember that part about business owners depending on their businesses for income? That would have meant significant economic loss for Hannah, and section 5 says that Regus will not be responsible for that loss. Here is the background on it. She did, after all, suggest that Hannah's use of the printer was a bother. 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. Regus is fully aware of the army of detractors it has earned itself over the years, spawning sites like and legal services like Veeto (who handles thousands of Regus cases every month). I imagine that this is the question that anyone who is not an attorney might first ask. Both parties to a contract, it seems, should have a fair shot at either getting what they were promised or getting commensurate compensation when they do not get what they were promised. Thank you so much for getting this process set up for me. You can argue that the contract cannot be performed because circumstances have changed. 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. GOOD GUY FINANCIAL ADVISOROne Market, Spear Tower, 36th floorSan Francisco, CA 94105United States of America. You need to draft and send a termination notice to Regus right away, probably within 2-3 days of receiving it. Go there, and find the clause that speaks to Cancellation requirements. But why was he receiving this email now, on the 25th of the month, or even at all? 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]. I pay Regus on time. Like most adhesion contracts, Regus contracts are littered with ambiguous and contradictory terms, particularly when it comes to cancellation requirements. There is no way for me to connect to the existing printer. Instead the client receives invoices for services he never ever ordered or signed for. don't be fooled by the well known brand they are awful So if you suspect that my analysis here is incorrect, you might be right (unless you are a twelve-year old who reads at second-grade level (or below)--in which case, why are you reading this article at all? 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. So when people talk about canceling a contract, breaking a contract, or getting out of a contract, if they have legitimate cause like Hannah, because the service provider failed to provide service as agreed, then it is likely that they can legally break the contract in question. When a condition is broken, the contract can be cancelled. In Regus terms I did by opening the email attachment.Circumstances have changes and our business needs to shed costs or fold. No. Note: if legalese bores you, then I suggest you skip this section and move on the the part that explains step-by-step how Hannah got out of her Regus lease contract. The form of Regus’s premature late notice is arguably an anticipatory breach. Again, we can only speculate...but what if all three of these questions are in fact related? 1. We just sent you an email. This happens to thousands of Regus customer every month. The phone was not hooked up. I waited for my client until I called her at 10:55. In their view, therefore, the present period started on 1 July 2014 and ends on 31 July 2015. It answers the question, “What might happen if you received this email, assumed it to be a mistake, and just forgot about it?” Sometimes, Regus follows through on its threats. 1. 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. 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"). Note the stats on this post: almost 2,500 views! Regus supplied office accommodation to Epcot (an IT training provider) on Regus’ standard terms and conditions of rental. So it was not hard to get an attorney to weigh in on this billing blunder. But if you have not heard of Veeto before, then I am guessing you do not get the joke. Yet Regus sends these emails. 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. So wihch risk you choose really just depends on what your goal is: staying if must or leaving if you can. On a beautiful late spring afternoon, about two months ago, a financial advisor received an email from Regus--although he did not yet know it was from Regus. 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. She didn’t knock on the door or call me. It is clear that there are a lot of people who feel wronged by Regus. Please click the link in the email to confirm your subscription! She emailed the office manager and asked to schedule a call with him. Your account remains overdue. 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. It may allow the other party an option to treat the contract as discharged if the breach is sufficiently serious. Is Regus in that bad of financial shape? Regus Capital Markets Day 2015 Presentation: 25/08/2015: Regus plc Interim Results Announcement 2015 Presentation: 03/03/2015: Regus plc Annual Results Announcement Year Ended 31 … Why is Regus’s market value continuing to decline? The more cash Regus can show on the books now, the more attractive it can make itself appear to a potential buyer. This is costing me around $600-$800 per month, and a cost that I really should be seeking compensation for as Regus is in breach of the agreement we have with not being able to provide a reliable business grade service on both fronts. It first says that the contract will auto-renew if you do not state in writing that you wish to cancel at the end of the original contract term. 2.6. But it seems like, every month, we get hit with a late payment notice, which includes a threat to suspend my office access in 24 hours. Why do you guys send late payment emails before monthly payment is due (the first of month)? breach of contract. From inside his pocket, his phone vibrated once to alert him of a new email. I bought a printer so I wouldn’t have to “bother” them.​, (something I had to invent just now to keep Hannah's litany of gripes organized), My clients want to meet with me in 1­3 days. Case Details. About Regus not being fair. This uncertainty of resource availability reminds me of the disastrous bank runs of 1930 and 1931, which led to the Great Depression. She is an attorney in California, and we will call her "Hannah." Craft a legal demand letter in which you state what resolution you demand and why you think you are entitled to it. Thanks again for everything--I'll be happy to recommend your services!" Strictly speaking, a breach of contract occurs if any of the terms are broken. After all, Regus members sign a lease contract, and if you really dig into that contract, you will realize that it seems quite one-sided, perhaps even unfair, in Regus's favor, of course. By a number of measures, subjective and objective, Regus is struggling. There are two types of compensatory damages: . Read on. Consequently Regus breached contract and we were totally within our rights to leave. It is too slow to look up each potential day and time specifically.​. She replied back to say that she had found another office and would not need to renew her lease when it expired later in the year, and she also asked if she could somehow downgrade her membership since she would no longer be using the Regus office space at all (Regus should have taken that offer, as you will see in a minute). This concept has its roots in common law. Hi, I have a contract with Regus for a 12 month virtual office, the agreement ends of 31/08/2011, however they have a clause in the contract which stats - Duration: This agreement lasts for the period stated in it and then will be extended automatically for successive periods equal to the current term but no less than three months until bought to an end by the Client or by Regus. 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. The Regus Automatic Renewal Clause (and How To Avoid It), We Believe That Helping Is The New Selling. So, legally, if Regus were to make good on that threat and suspend your services for non-payment (of a payment that is not actually due for another 4 days), then you might have a claim for breach of contract against Regus. Anyone whose time is valuable, attorneys included, are susceptible to what I call the "low-value claim" problem (something I have written about extensively on the official Veeto blog, Nothing But Teeth). I am not a Regus member, so maybe I am excused from sleeping with one eye open given my publication of these Regus contract excerpts. A Regus member's ability to benefit from his/her membership is undermined when Regus leases the same space to too many people. Still, in this one case alone, her $43 Veeto membership returned her $4,459 in avoided Regus early termination fees, lease payments, and forfeited deposit fees paid to Regus. A breach does not on its own automatically discharge a contract. Office: The promotion applies to any new Equipped Office contract signed for a minimum of 12 months. Hint: option 2 is probably your best bet if you are looking to leave Regus immediately. Breach of contract is a legal cause of action and a type of civil wrong, in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party's performance. We are walking away from Regus as one on the luck ones. Or invoices are sent from the Regus Group, which are dated months before the service contract was even signed. A condition is an essential term in the contract, a term that is so important that without it one or other of the parties would not enter into the contract. Regus IT service subscriptions have a minimum contract term indicated at the time of purchase. Regus received the letter and allowed me to cancel my agreement with them! Before this right can be exercised, the breach must be legally established. 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! She figured out how to get out of her Regus lease contract early, which saved her $4,459. 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 … One factor is whether any breach relates to a condition in the contract. Again, by contrast, nowhere does this lease agreement preclude Regus from pursuing the member should he fail to hold up his end of the deal by not making his agreed upon payments. We just sent you an email. It beckons that whole concept of "sunshine is the best antiseptic," in the sense that places where sunshine is not permitted to reach must be filthy. A good old-fashioned legal disclaimer: I am not your attorney, and this is not legal advice. And that is why I decided to write this post, because...I found someone. Not most people, I bet. Your services may be suspended, Fight-or-flight mode kicked in and instantly chased away the prior good vibes. As far he could recall, he had not missed a rent payment, and the next payment period did not begin for another 5 days, on the 1st of May. Speaking of confidentiality, section 2.9 is a real gem. There are not enough conference rooms and day offices available to book. but not at the expense of staff, What should you do? The Business Journals. Instead the client receives invoices for services he never ever ordered or signed for. When one party to a contract clearly says that it does not intend to perform its obligations, then the other party can no longer be expected to “remain ready” to perform a one-sided deal (remaining in your Regus office, for example, after Regus threatens to kick you out in 24 hours). The reason Regus has so far been willing to take that risk is that not very many people were familiar with what I am about to tell you, which is how you can legally terminate your Regus contract early when you receive one of these dubious late-payment emails. They pay next month’s payment, five days before it is due, because Regus threatened them. It is extremely frustrating and unprofessional.​, The office booking system is terrible because I can’t see which windows of time are available. 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. But, of course, we have an outright statement in this Regus example. 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. Why? Thus, it seems that quite a bit of people end up getting hit with an extra three months of rent beyond when they probably were thinking they would be done with Regus. 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. I was shocked. 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. Or invoices are sent from the Regus Group, which are dated months before the service contract was even signed. 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. that any breach by You of this clause shall constitute a material default, entitling Us to terminate Your agreement without further notice. [The receptionist] said there might be a new printer. Many contracts include a concept known as force majeure (“superior force”) or “Act of God,” which is invoked to justify a party’s suspension or cancellation of performance under the contract. In a breach of contract suit, common defenses include: Misrepresentation or fraud. It is simply that in imposing conditions for the accepting of any liability, Regus did not, by referring to the need for negligence, wish to suggest that an intentional breach of contract could not similarly be made the basis of liability. Consequently Regus breached contract and we were totally within our rights to leave. When is your next Regus payment actually due? Crazy, right? The Client agrees to pay the subscription fee for the entire term. So Regus has apparently followed through on these threats in some cases, which makes it not only harder to believe that it was a mere billing error, but that your business is not at risk whenever you receive a similar notice. Cancellation of contracts are simply “ignored” and requests refunds due to breach of contract by the Regus Group are ignored too. How One Attorney Canceled Her Regus Office Lease Contract, And avoided paying an early termination fee--saving her $4,459. Regus have a standard response to ALL businesses, worldwide. They are: 1. 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. Regus argued that even if it was in breach of contract in relation to the defective air-conditioning there was a term in the contract which excluded any liability to pay compensation.