General Electric Capital Corporation v. Fpl Service Corp.

986 F. Supp. 2d 1029 (2013)

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Nature of the Case

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Facts

P and D entered into a contract for the lease of two Ricoh Pro C901 copiers (the copiers), and related equipment. P agreed to make 60 rental payments of $6,229.30. In late October of 2012, Hurricane Sandy struck Long Island, destroying nearly all of D's equipment, including the two copiers it leased from P. D stopped making its rental payments. D has made 19 of the 60 payments it agreed to make. The contract describes D's options if the copiers were to be damaged: If any item of Equipment is . . . damaged, [FPL] will (and Rental Payments will continue to accrue without abatement until [FPL]), at [FPL's] option and cost, either (a) repair the item or replace the item with a comparable item reasonably acceptable to [GECC], or (b) pay [GECC] a sum equal to (1) all Rental Payments and other amounts then due and payable under the Lease, and (2) the present value of (i) all Rental Payments to become due during the remainder of the Lease term, and (ii) the Purchase Option amount set forth in this Lease, each discounted at . . . (y) the lease charge rate (as determined pursuant to Section 16) if this Lease provides for A dollar Purchase Option . . . [GECC] will then transfer to [FPL] all [of GECC's] rights, title, and interest in the Equipment 'AS-IS, WHERE IS' WITHOUT ANY REPRESENTATION OR WARRANTY WHATSOEVER, Insurance proceeds will be applied toward repair or replacement of the Equipment or payment hereunder, as applicable. In January of 2013, P repossessed one of the copiers and then noticed D that a default had occurred under the Loan Agreement,' and that P intended to 'sell the Collateral privately sometime after 10:00 am on March 11, 2013.' P demanded 'immediate payment of the entire outstanding balance due on the Lease . . . together with interest and other charges.' On June 5, 2013, GECC repossessed the second copier. After repossessing the copiers, GECC resold them in June and July of 2013. They were resold. P sued D for breaching its lease agreement. D moved for summary judgment, claiming that there are no material factual disputes and that GECC is entitled to damages for FPL's breach of contract as a matter of law.