- 10 - Wysong Medical with additional equipment and services not specified in the lease agreements. According to petitioners, the lease agreements do not embody the entire agreement between the two entities. In addition to the physical space, petitioners contend that Wysong Medical's rent payments included a premium for: access to or use of Wysong Corp.'s equipment and employees; and costs incurred on behalf of Wysong Medical by Wysong Corp. for phone systems, computer systems, freight expenses, printing expenses, fitness equipment, kitchen facilities, and inventory used by Wysong Medical in its research and development activities. Respondent argues that the lease agreements speak for themselves. Alternatively, respondent argues that even if Wysong Medical used additional space not reflected in the lease agreements petitioners failed to establish that the rental rate was reasonable. For example, petitioners failed to adduce evidence which establishes when the Eastman Building's addition was completed and hence the square footage of the Eastman Building during the years in issue. Respondent also attacks petitioners' second argument that the parties to the lease agreements intended for the lease to cover additional equipment and services. Among other things, respondent argues that Wysong Medical had no business purpose for the sale and leaseback of its equipment and that the transactionPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011