Contracts Keyed to Summers
Industralease Automated & Scientific Equipment Corp. v. R.M.E. Enterprises, Inc.
R.M.E. Enterprises, Inc., Max Evans, and Irene Evans (Defendants) owned a picnic grove. On February 24, 1971, Defendants executed an agreement with Clean Air Controls, Inc. (Clean Air), which provided that Defendants would lease two incinerators from Clean Air. On May 13, 1971, a representative of Clean Air and a representative of Industralease Automated & Scientific Equipment Corp. (Plaintiff) required Defendants to sign a new lease in order to obtain their equipment, stating that the prior lease was no longer effective. The new lease included a disclaimer of express and implied warranties. On May 14, 1971, Plaintiff delivered and installed the incinerators. The incinerators never worked. Plaintiff later sued seeking $17,936.76 in payments due under the lease. Defendants argued that the disclaimer was unconscionable. The trial court rejected this argument but instructed the jury to determine whether Plaintiff made express warranties that had been breached. The jury found that Plaintiff had made express warranties regarding the incinerators and that Plaintiff had breached those warranties. The jury therefore found in favor of Defendants. Plaintiff appealed.
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