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Lease Voided Due to Vendor' Default
On Oct. 31, 2007, a trial-level court in New York issued a decision finding that an equipment lease 'fail[ed] for lack of consideration' when the bankrupt vendor did not deliver the leased equipment, even though the lessee had signed a lease amendment stating (as quoted by the court) that:
[i]n consideration of Lessor's agreement to advance funds as requested above, Lessee agrees to immediately commence payments under the Lease, even though all of the Equipment may not yet be installed. Lessee agrees that, in order to induce Lessor to make payment as described above, the Lease will be in full force and effect immediately upon execution of this Amendment, as will Lessee's duty to make all payments and to fulfill all other obligations pursuant to the Lease. Should any item of Equipment not be delivered, Lessee alone shall be responsible and shall have recourse only to the appropriate Vendor. ' Nondelivery of any item of Equipment shall not relieve Lessee of the obligation of payment in full under the Lease.
Although this decision will likely be appealed and may be reversed, it still provides a cautionary tale of which lessors should be aware, so as to reduce the likelihood of suffering a loss due to a vendor's default.
While on its face this decision seems to run afoul of the basic leasing tenet that a finance lessor is only responsible for providing money to a deal and any issues regarding the equipment are between the lessee and the vendor, the facts set forth in the decision in CN Funding LLC v. The Ensig Group Ltd. et al. allowed the court to hold that the lessor did not qualify as a finance lessor insulated from the vendor's obligations.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?