Case Law Developments

This survey covers several 2017 cases involving parties to equipment financing transactions or with third parties, disputing aspects of the transaction or the related equipment. The courts in these cases considered many of the fundamental issues in establishing and enforcing the respective rights, obligations, interests, and remedies associated with equipment financing agreements. The issues covered in the following cases include whether a transaction documented as a lease creates a true “lease” or a security interest, a lessor’s damages remedies, issues surrounding certainty of payment such as “hell-or-high-water” clauses, the rights of assignees of interests under a lease, end-of-lease-term issues, vicarious liability of a lessor, and issues relating to forum selection clauses.

Originally published in the Fall 2018 edition of The Business Lawyer.