Prevent Vendor Lawsuit

When we moved to new offices, I discovered that our telephone vendor, Telephone Communications, Inc., had automatically renewed our phone lease, obligation us to another two years of payments. At $500 per month, that was $12,000. Knowing my office lease was going to expire soon, I certainly did not voluntarily renew the phone lease. The phone company tricked me into a "renewal." Their monthly statements were a six-page nightmare, and in the impossible-to-read small print on the last page, they said they would automatically renew the lease.

This was an impossible bureaucracy to penetrate. I could never speak with a real person. The company kept sending me invoices, which I returned, explaining the circumstances. The invoices became past-due notices and threats of litigation, so I turned the matter over to my attorney, who settled the issue. It was difficult even for him to end it. It took several personal visits to their offices, and even after the matter was closed, invoices continued to arrive for several more months.

Stuart Murtach
Murtach & Murtach
1800 Lincoln Street, STE 4000
Denver, CO 80203

October 25, 20--

Ms. Chelsey Dhillon
Account Executive
Telephone Communications, Inc.
1660 Broadway, Suite 2550
Denver, CO 80264

RE: Contract #91454, Account Number 001000000093120
Dear Ms. Dhillon:

I have been retained by Mr. William Frank, President and CEO of CareerLab, on behalf of CareerLab, to address termination issues arising out of the referenced contract which was executed by CareerLab on 10/29/-- (the Contract). The Service Commencement Date would appear to have occurred sometime in December 20--. The initial term of the Contract was for two years.

On behalf of CareerLab I have been instructed to provide to Telephone Communications, Inc. notice of termination of the referenced Contract effective November 30, 20--. CareerLab's current lease in its space at 304 Inverness Way S, STE 465 Englewood, CO expires on November 30, 20--. Due to the exigencies of business CareerLab is unable to renew its lease at that location.

CareerLab will be moving to a suite in the Time Warner Telecom Building in Lone Tree, Colorado. CareerLab cannot transfer the services of Telephone Communications, Inc. to that suite because the owner of the building, Time Warner Telecom, requires the use of its telecommunications services as a condition of leasing in that building. Therefore, CareerLab is unable to receive the services of Telephone Communications, Inc. at that location.

Because of the impossibility of the utilization of the services of Telephone Communications, Inc. at its new location, CareerLab requests the waiver of any alleged termination charges that you might claim arise out of the referenced Contract.

I have reviewed the reference contract in detail. Paragraph B of the Services Terms and Conditions states in part as follows: " . . . Telephone Communications, Inc. will notify Customer, in writing, at least sixty (60) days prior to the expiration of the Term, regarding the pending expiration of this Agreement and the automatic renewal of the Agreement if no action is taken prior to expiration."

As President and CEO of CareerLab, Mr. Frank represents that CareerLab did not receive any such notification sixty (60) days prior to the termination of the initial term of the Contract. The notification specifically requires the specific communication of the pending expiration of the Contract and its automatic renewal if no action is taken.

I do not believe a court of law would find that the "boilerplate" language in your monthly invoice in the paragraph entitled "Contact Renewal Information" would satisfy the quoted Contract language. The language quoted supra clearly requires a separate and additional notification to the Customer of the pending expiration of the Contract so the Customer can make a conscious decision as to whether to renew the Contract and for what period of term.

Allowing the Contract to terminate on November 30, 20-- without the imposition of any alleged termination charges would appear to be in the best interests of both CareerLab and Telephone Communications, Inc. The potential charges involved are not great from Telephone Comminication Inc.'s perspective although such could have an adverse impact of the business of CareerLab.

Your agreeing to the request set forth herein would assure the continued goodwill towards Telephone Communications, Inc. of CareerLab and Mr. Frank who are well known and respected in the Denver business community. Mr. Frank enjoys the notoriety generated from his writing periodic articles relating to employment issues in The Denver Business Journal, The Denver Post, and The Rocky Mountain News, among other publications.

CareerLab and Mr. Frank would greatly appreciate a positive response to this request within 14 business days.


Stuart Murtach

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