The Leasing Company Terminated the Agreement
We review the grounds for unilateral termination, compliance with the contractual procedure and the consequences of ending the lease.
LEASING DISPUTES
Leasing Disputes & Legal Support
We protect businesses in disputes with leasing companies — from contract review and negotiations to proceedings in Russian commercial courts. We handle termination, recovery of the leased asset, outstanding payments, penalties and the final settlement after the lease ends.
A lease agreement is more than a payment schedule. In a dispute, the financing terms, buyout value, disposal of the asset, insurance proceeds, penalties and the final balance of the parties’ obligations may all matter.
WHEN A LEASING LAWYER MAY BE NEEDED
When a Dispute with a Leasing Company Arises
Leasing disputes are rarely limited to a single overdue payment. After termination, the claimed debt may be supplemented by penalties, a demand to return the asset and expenses for recovery and storage. At the same time, the value of the returned leased asset and the amount the lessor received or should have received from its disposal must also be taken into account.
The Leasing Company Demands Return of the Vehicle or Equipment
We assess the legality of the demand, the contract terms, any outstanding debt and possible defense options before the asset is physically recovered.
A Large Debt Has Been Claimed
We break down the claim into principal debt, future payments, penalties, expenses and other amounts included by the lessor.
The Asset Has Already Been Recovered
We analyze what happened to the leased asset afterwards, the price at which it was disposed of and whether the final settlement between the parties is correct.
The Lessor Demands Additional Payment after Selling the Asset
We review the final settlement balance and determine whether any debt actually remains payable by the lessee after disposal of the leased asset.
The Final Calculation Is in the Lessee’s Favor
If the final settlement shows that the lessor owes money, we consider bringing the lessee’s own monetary claim.
FINAL BALANCE UNDER THE LEASE
Recovery of the Asset Does Not End the Financial Settlement
One of the main mistakes in a leasing dispute is to assume that once the vehicle, machinery or equipment is returned, the issue is limited to the accumulated debt.
After termination, the economic result of the parties’ relationship still has to be determined. The lessor receives back an asset that has value and can be disposed of. The final settlement therefore considers not only unpaid amounts, but also the value of the returned leased asset, the actual disposal price, the lessor’s expenses and other relevant circumstances.
Our task is to review not one figure from the leasing company’s claim, but the entire financial settlement after termination.
Depending on the circumstances, the final balance may be in favor of either the lessor or the lessee.
Payments under the Agreement
Termination of the Agreement
Return of the Leased Asset
Value / Disposal Price of the Asset
Expenses and Insurance Proceeds
Final Balance
Who owes whom after termination?
Nikolay NemkovLeasing Disputes
EXPERT COMMENTARY
Nikolay Nemkov on Disputes with Leasing Companies
In a leasing dispute, it is important not to focus only on the amount of debt stated in the claim. The entire economics of the transaction need to be reconstructed: how much was paid, why the agreement ended, what happened to the leased asset, at what price it was disposed of and what the final settlement between the parties should be.
What to Review before Court
The earlier the agreement, payment schedule, notices and actual movement of the leased asset are analyzed, the more options the business retains. Once a claim is filed, the dispute becomes formalized, so it is better to prepare your own calculation and legal position in advance.
In a leasing dispute, documents and numbers matter more than general arguments.
Discuss a leasing disputeWHAT THE LAWYER REVIEWS
What We Review in a Leasing Dispute
The Lease Agreement and General Leasing Terms
We review not only the individual agreement but also the leasing company’s general terms, appendices, payment schedules and amendments.
Grounds for Termination
We verify whether the lessor actually had the right to terminate and whether the required procedure was followed.
Amount of the Debt
We separate actual outstanding debt from penalties, future payments and other amounts included in the claim.
Penalty
We review the legal basis, period, amount and whether there may be grounds for reduction.
Value of the Leased Asset
After return of the asset, its value becomes a significant element of the final economic settlement.
Disposal of the Returned Asset
We analyze when, to whom and at what price the leased asset was disposed of and whether that price is consistent with the circumstances.
Leasing Company Expenses
We review expenses for recovery, transportation, storage, repair, valuation, disposal and other amounts included in the calculation.
Insurance Proceeds
If the leased asset was damaged, lost or an insured event occurred, we analyze the insurance payment and its effect on the parties’ settlement.
Final Balance
We prepare our own calculation of the parties’ reciprocal performance and compare it with the leasing company’s calculation.
HOW WE CAN HELP
How We Can Help
Lease Agreement Review
We review the agreement, general terms and appendices and identify legal risks and possible options.
Response to a Leasing Company Claim
We prepare a reasoned position on the alleged debt, termination and other demands.
Negotiations
We negotiate continued performance, changes to the terms, return of the asset or final settlement of the dispute.
Defense in Contract Termination
We review the grounds for unilateral termination and its legal consequences.
Dispute over Recovery of the Leased Asset
We protect the client when return is demanded of a vehicle, special-purpose machinery, equipment or other property.
Review of the Final Settlement Balance
We recalculate the economic result after termination and return of the asset.
Claim Against the Leasing Company
We prepare a monetary claim if the final calculation shows that the lessor owes the lessee.
Defense Against a Debt Claim
We review the amount claimed, grounds for the claim, penalties and the final balance of obligations.
Disputes with the Seller of the Leased Asset
We assist where the asset was not delivered, delivery was delayed, the asset is defective, has the wrong configuration or there are other seller-related problems.
Representation in Russian Commercial Courts
We prepare the legal position, procedural documents and evidence and represent the client in court.
THREE PARTIES TO THE TRANSACTION
When the Problem Is with the Seller, Not the Leasing Company
A leasing transaction involves at least three parties: the lessor, the lessee and the seller of the asset. The cause of the dispute may therefore lie outside the lease agreement itself.
If the seller failed to deliver the vehicle or equipment, missed the delivery deadline, supplied defective property or delivered the wrong configuration, it is necessary to determine separately which claims can be brought and by whom.
Where provided by law, the lessee may bring claims directly against the seller concerning quality, completeness and delivery deadlines of the leased asset.
Review the Transaction DocumentsLeasing Company
Lessee
Seller
Lease AgreementSale AgreementTransfer of the Assetquality · completeness · delivery deadlines
STEP BY STEP
The Leasing Company Sent a Demand. What Should You Do?
01
Do Not Assess the Debt Solely by the Figure in the Demand
The amount claimed does not itself mean that this is the amount that must ultimately be paid.
02
Collect the Documents
You will need the agreement, general terms, payment schedule, amendments, payment documents, correspondence and notices from the lessor.
03
Review the Consequences of Termination
If the agreement has ended and the asset has been returned, its subsequent disposition and the final settlement must be analyzed.
04
Form the Position before Court
The earlier the calculations are checked and objections prepared, the more options remain for negotiations and court defense.
DOCUMENTS
What to Send for the Initial Legal Review
- lease agreement
- general leasing terms
- payment schedule
- amendments
- payment documents
- claims or demands from the leasing company
- termination notices
- correspondence
- documents on return or recovery of the asset
- handover and acceptance certificate
- documents relating to an insured event, if any
- statement of claim, if the dispute is already in court
- court rulings, if the case has already been considered
If some documents are missing, we can still start with the materials you have.
Discuss a leasing disputeHOW WE WORK
How We Handle a Leasing Dispute
1
Review the Agreement
We analyze the individual terms, general leasing terms, payment schedules and supplementary documents.
2
Reconstruct the Timeline
We determine what payments were made, when the default began, what notices were sent and when the agreement ended.
3
Review the Calculations
We separately analyze the debt, penalties, value of the asset, insurance proceeds and claimed expenses.
4
Determine the Strategy
We choose between negotiations, continuation of the agreement, voluntary return of the asset, the client’s own monetary claims and court proceedings.
5
Handle the Dispute
We prepare documents and represent the client in negotiations and court.
BUSINESS LOGIC
A Leasing Dispute Should Be Calculated as a Business Decision
Sometimes keeping the leased asset makes economic sense. Sometimes it is better to return it and minimize the consequences of termination. In another situation, the business may need to dispute the disposal price or bring its own monetary claim.
The consequences of each scenario should therefore be understood first, and only then should the legal strategy be chosen.
Keep the Agreement
When the business can continue making payments and needs the leased asset for its operations.
Negotiate an Exit
When continuing the agreement is economically unreasonable and the consequences of termination need to be minimized.
Litigate
When the leasing company’s demands, termination procedure or final calculation provide grounds for court proceedings.
QUESTIONS AND ANSWERS
Frequently Asked Questions about Leasing Disputes
Can a leasing company take back a vehicle because of payment arrears?
The right to terminate the agreement and recover the leased asset depends on the law and the terms of the particular agreement. The amount and duration of the arrears, the general terms and the procedure for giving notices need to be reviewed.
If the vehicle has been recovered, does the debt disappear?
Not necessarily. After termination, the final financial result between the parties still needs to be determined. The outstanding debt cannot be considered separately from the value of the returned asset and the other economic consequences of termination.
Can part of the leasing payments already made be recovered?
Termination alone does not automatically mean that all payments already made must be returned. However, the final settlement after termination may be in the lessee’s favor. This depends on the circumstances of the particular transaction.
What is the final balance under a lease agreement?
It is the final economic result of the parties’ relationship after taking into account payments made, financing provided, the value of the returned asset, expenses and other relevant circumstances.
Can the contractual penalty be reduced?
In court proceedings, there may be grounds for reducing a penalty that is clearly disproportionate. This issue is analyzed separately from the underlying claim.
What if the asset was sold too cheaply?
The circumstances of disposal, the condition of the asset, its market value, the timing and method of sale need to be examined. The disposal price may significantly affect the final settlement between the parties.
Who is responsible for defective machinery or equipment?
This depends on the contract terms, the choice of seller and the leased asset. In the circumstances provided by law, the lessee may bring claims directly against the seller relating to quality, completeness and delivery deadlines.
What happens if the leased asset is stolen or totally destroyed?
The consequences depend on the agreement, allocation of risks and insurance. Insurance proceeds and how they are applied in the parties’ settlement need to be taken into account.
Do you work only with vehicle leasing?
No. A dispute may involve passenger vehicles, trucks, special-purpose machinery, equipment or other property that can be leased.
Can we contact you after the leasing company has already filed a claim?
Yes. The statement of claim, calculation, supporting documents and court materials need to be reviewed before a position on the claims is formed.
LEASING DISPUTE
Received a Demand, Had the Agreement Terminated, or Had the Leased Asset Recovered?
Briefly describe the dispute. We will let you know which documents are needed and how to send them. We will review the leasing company’s demands, check the calculation and identify the available defense options.
Discuss the Situation
We handle business leasing disputes across Russia.