UnitedLayer vs. San Francisco Settles for $850,000
Table of Contents
Case Background
UnitedLayer, LLC provided colocation services at 200 Paul Ave., San Francisco. The parties executed a Master Agreement effective February 1, 2011. They later signed a First Amendment on January 27, 2016. Plaintiff performed monthly services through January 31, 2021. The City and County of San Francisco served as Customer under the Contracts. Plaintiff alleged the Agreements authorized monthly base fees, additional charges, late fees, and interest.
Cause
As term end approached, Defendant notified its plan to vacate by January 31, 2021. Plaintiff audited accounts and issued invoices for unbilled additional charges and outstanding balances. The parties exchanged letters in January–February 2021. Defendant invoked audit rights but did not complete the CPA audit. On February 3, 2021, the parties met. Plaintiff alleged Defendant’s representatives acknowledged the balance but cited budget constraints and proposed to pay overtime. Defendant made one partial payment on April 19, 2021. However, large sums remained unpaid.
Injury
Plaintiff suffered business disruption and cash-flow strain. The alleged nonpayment restricted operational resources and
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