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Quantifiable firstly in additional staffing.
as an example, the additional management that it takes to negotiate the electrical system that trips multiple times daily. Not only in figuring out the problem but also in dealing with our angry sub tenants.
The Cost of the forceful reentry was legal costs and much staffing time.We suffered a huge amount of loss of goodwill which is of course difficult to quantify however there was a significant loss of trade due to this (events bookings etc),We also lost one of our members of staff due to this which has had a knock on effect financially and demanded a huge amount in additional hours to put right. Again, losing the godwill from the strain on the remaining staff
The lack of quiet enjoyment has had a huge effect on our goodwill, how staff and tenants operate and feel secure in the building, and this leads to unease and vacating of studios (which we sublet out). Our landlord has forcefully entered private studios which again does not have a good effect on our tenants and puts us in a compromising position.
The additional staffing alone mounts up to a significant amount.The goodwill and therefore damage to branding, in turn leading to additional hours to put right and additional marketing expenses.We also have a huge amount of goodwill that we are currently quantifying through a social auditor, so it is also quite damaging to the company's overall value in this manner, not just n cashflow.
There is also the additional aspect of the impact that all of this is having personally on the three directors who are near breaking point of the continuous breaches that the landlord commits to which hare considerable consequences.There are directors loans (from directors to the organisation) that have not been paid back, if the company was to stop operating because of these incidents then of course this capital would be lost.
It could prove to be a considerable case however in the first instance it would be good to understand the process.
There are the basic costs of replacement of Locks amounting to £500.Plus the Lawyers fees of £900 to get advice and send letters regarding this.Then Approximately 18 hours/day for 4 staff members (@£20/hour) for two weeks (£20,000) dealing with lawyers and doing damage control with tenants, overnight security, dealing with bailiffs, police etc.
Ok, so that is £21,400 so far. How do you get to £100,000?
The Lack of quiet enjoyment is less than it was a year ago which took several hours daily in corresponding with representatives of the landlord who were being shown around for potential sale or development. These also took a lot of damage control to keep our existing tenants or find new tenants once the other had had enough.
While the Landlord takes his time and books in dates to do the electrical work (replacing the entire system) I cannot take event bookings. So when the electricians don't turn up because they haven't been paid, I've lost trade on days I couldn't take the bookings as well as having to lost trade on the days to rebook. Which likely the electricians wont turn up again.. again, yet they have turned up unannounced and disrupted events I have booked in.Our events go from £200 for a small business/charity booking to £4000 for a wedding booking.If the latter is cancelled last minute, word gets around that we are that kind of venue and we lose trade there as well.
So when you are working out lost trade over the period, are you able to give a figure for that? Clearly you can't just make one up it has to be averaged over a period of this time last year.