- 4 -
charge. Consequently, as compensation for subleasing
petitioners’ equipment to end users, Hairston was entitled to
retain at least 60 percent of the basic rental charge to the end
users. In addition, Hairston retained 100 percent of additional
end-user fees such as taxes and charges for delivery and fuel.
Pursuant to the lease agreement, Hairston assumed “all
responsibility” for petitioners’ equipment. Hairston was
required to service and maintain the equipment, to provide
insurance, and to collect and pay any taxes on the equipment.
Hairston was to make or arrange for all repairs and to charge
petitioners for the repair costs by subtracting them from the
40-percent portion of the end-user lease payments Hairston might
otherwise pay to petitioners. During 1995 and 1996, Hairston
charged petitioners only minimal amounts for repairs on
petitioners’ equipment.
The officers and employees of Hairston, including
petitioners, were responsible for supervising and performing
maintenance and repairs on petitioners’ equipment and on the
equipment owned by Hairston, for dealing with the end users, and
for billing and collecting lease payments from end users of the
equipment. Occasionally, after hours or on weekends, petitioners
would check on the status of the equipment they personally owned.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011