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| Orla Troy, owner the West Cove Restaurant, dissolved the restaurant in 2005 at the end of its 10-year lease on the property. She is now being pressured by MIRO LEISURE CORP., owned by Mich, for about forty thousand dollars in loss of business and legal fees from a Jute Box and a bar top video game. MIRO LEISURE CORP. has presented contracts that Orla did not know existed. Orla had said she would not have entered into an "Installation Agreement" and accepted the two pieces of equipment on a verbal agreement, for a 50% / 50% split on the money collected. She would supply the location and electricity, MIRO LEISURE CORP. would supply the machines and maintain them. They had agreed if the machines did not produce enough income, MIRO LEISURE CORP. would remove them and put them in another location.
Before the machines were delivered, Orla was required to supply a copy of her 10-year lease for the restaurant. Her property lease had about 7 years left on it at that time. When the machines were delivered, Orla was asked to sign a receipt. She asked the MIRO LEISURE CORP employee what it was for? He said, it was just a receipt that states she accepts delivery on the Jute Box and video game. In addition, that it is in good condition and will be covered under her business insurance in case of vandalism or fire. She trustingly signed the document and was told that she would get a copy. Orla never did get a copy. The MIRO LEISURE CORP. representative would come by every other week and split the money with no problems. After about a year MIRO LEISURE CORP. representative offered Orla a $5,000.00 (five thousand dollar), no interest loan, which would be paid back, from her share of the 50% (fifty percent) income. MIRO LEISURE CORP. would get 100% of the income until the loan was paid back. Orla asked," Why would you want to do that?" Orla said a MIRO LEISURE CORP. representative told her "out of gratitude for recommending them to two new accounts and the good business they were doing".
Orla met with Mitch, the owner of MIRO LEISURE CORP., in Riverhead, at the front of the bank in his car. He gave her a check and asked her to sign some papers. Orla asked, what is it you want me to sign? Mich explained that it was a guarantee for the bank to pay back the loan. When she asked for a copy, Mich said she has the check and that is all she needs. The loan was paid back with no problems.
Six months before her property lease was up, Orla told MIRO LEISURE CORP. representative they would have to move the Jute box and video game out before the end of the year. MIRO LEISURE CORP. tried to get the new property leaseholder to take the equipment, but they were not interested. Just a few weeks before the end of Orla's lease on West Cove expired, she told MIRO LEISURE CORP. representative to call Mich and tell him he needs to remove the equipment. At that point, Mitch told her she still has about three years left on their agreement. Orla was shocked to hear this and was only aware of their verbal agreement. The installation agreement was signed when the machines were delivered, but was said to be a basic receipt. Then installation agreement was replaced at the time of the $5,000.00 dollar loan. Again, they were misrepresented as the loan guarantee. The lease agreement is quite a document. Here are a few of the high points:
1: You give up your right to go to Court to settle this agreement
2: The agreement states (Fifty) 50% / (Fifty) 50 % split in a large type font. Then in small type, in the next line, there will be a $100.00 dollar minimum on the Jute box and a $75.00 dollar minimum on the bar top video game. (The Montauk Sun notes: See how the larger size of type easily detracts from the smaller print clause stating the minimum dollar amount due.)
3: Shortages on minimums can be paid at any time, or within 1 year of the expiration of the end of the agreement in a lump sum. (This would prevent a red flag going off during the agreement)
4: The 10 year term of contract automatically renews for another 10 years, if not notified by registered mail at least 90 days before the end of the agreement.
5: Any blanks on the contract including names, percentages and dates can be
filled in, at a later date, by MIRO LEISURE CORP.
The Montauk Sun called another vending machine company and typically, this type would have a (Five) 5 year term and truly 50%/ 50% split no minimums.
The Montauk Sun called the MIRO LEISURE CORP. representative, that originally delivered the two machines to West Cove Restaurant, and asked him how the papers he had Orla sign turned into a contract.
He replied, "I'm just the little guy, why are you calling me?"
Montauk Sun replied with ": Orla said you were always nice to her and we thought you can clear up the original paper work. You told her was just a receipt that states she accepts delivery on the Jute Box and Video Game and that it is in good condition and will be covered under her business insurance in case of vandalism or fire".
Miro Corp.Represenative: "Where did you get my number?"
Montauk Sun: "Orla gave it to us, so we could clear up how this delivery receipt turned into an agreement.
Miro Corp Representative:"When she got the $5,000 dollar loan from Mich.
Montauk Sun: "But that is a year after the date of the first agreement that corresponds to when you delivered the equipment.
Miro Corp Representative: ": I don't remember. It is a long time ago. I'm just the little guy".
The Montauk Sun sensed he was upset, but more important he did not acknowledge he had Orla sign anything other than a receipt at the date of the first contract.
So the Montauk Sun called Mich, the owner of MIRO LEISURE CORP.
Montauk Sun:" Hi, my name is Kenny from the Montauk Sun, and we are doing a story on you and Orla from West Cove.
Mich: "I don't know who you are and I don't think I want to talk to you."
Montauk Sun: I am Ken, from the Montauk Sun newspaper and was trying to figure out why you would make an agreement for ten years when you knew from the copy of the business lease supplied by Orla that she only had seven years left on her lease".
Mich: "She owes me the money I recorded the agreement and she has to pay".
Montauk Sun: "What is the purpose of waiting till the last year of the agreement to get your minimums on the equipment?"
Mich: "Call my lawyer. I don't want to talk to you".
Montauk Sun: "We called your lawyer first and he would only say "no comment". I just wanted to give you a chance to tell your side of the story".
Mich: "Then that's what I say, no comment".
Montauk Sun: We just wanted to give you a chance to tell your side of the story before we write the story".
Mich: "Write your story, I don't care".
Then he hung up. So the Montauk Sun called our Suffolk County Legislator, Jay Schneiderman, to see what he thought. As I told him the details, he kept saying PREDATOR repeatedly, about ten times. He suggested we call the Suffolk County District Attorney's Office. As we go into deadline, we are waiting for them to get back to us. The Montauk Sun does not understand why the MIRO LEISURE CORP is pursuing Orla. It is estimated that they have collected over $57,000.00 in the seven years the machines were at West Cove. MIRO LEISURE CORP also had a pool table there that Orla was not required to sign a contract for and yet MIRO LEISURE CORP made money on this equipment, too. All the equipment was picked up by MIRO LEISURE CORP. and could be placed somewhere else.
If you have any equipment from MIRO LEISURE CORP., check your contract. If you do not think that you have a contract, it may be even worse. If you have had any experiences similar to this matter with Mich or MIRO LEISURE CORP. contact the Montauk Sun at 631-668-5077 |
