Cma Cgm, S.A. Waterfront Container Leasing Company, Inc.

82 U.C.C. Rep. Serv. 2d 259 (2013)

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Nature of the Case

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Facts

In March 2007, P and D entered into Lease 7006, a five-year term lease for 7,271 containers, in addition to other separate leases. Lease 7006 includes a purchase option provision, which provides that: Lessee is granted a Purchase Option provided that Equipment remains continuously under lease for a minimum period of Five (5) years and subject to the limitation that the sale will be for the totality of the units under lease at the time of the conclusion of the agreed lease period. Unit purchase price shall be as follows. 20' Dry Cargo Container: $750.00, 40' Dry Cargo Container: $1,200.00, 40' HC Dry Cargo Container: $1,300.00. Lessee shall notify Lessor of intent to exercise the Purchase Option by Sixty (60) day written notice. Lessee shall pay the money due before the conclusion date of the lease period. P sent D a 'Purchase Option Notice.' D refused to honor the notice. In May 2012, D demanded that P return all of the containers. Beginning in July 2012, P began returning the containers to D. At the time the present motions were filed, approximately half of the Lease 7006 containers had been returned to D. Earlier in the action, the Court granted P's motion for partial summary judgment, finding that P exercised the purchase option provision, and Waterfront breached that provision by failing to issue an invoice for the amount due. P moved for specific performance.