New York Appellate Division Rules in Favor of Northern Leasing Systems, Inc.
Court Reverses Summary Judgment Decision
New York, NY, September 15, 2011 – Northern Leasing Systems, Inc. (www.northernleasing.com), the leading provider of third-party micro-ticket equipment leasing services in the United States, today announced the New York Appellate Division has ruled in favor of the company, reversing summary judgment as to liability in a breach of contract class action brought against the company by four lessees.
A five-judge panel of the New York Apellate Division Thursday reversed, on the law, with costs, a March 29, 2010, ruling by a New York state trial judge. The decision was unanimous.
“Northern Leasing has always prided itself on the fairness of our business practices,” said Jay Cohen, chairman and chief executive officer of Northern Leasing Systems, Inc. “Our swift and continued willingness to resolve issues as soon as they arise is a strong indication that we take our reputation very seriously.”
“This opinion has vindicated our confidence in a favorable outcome to our case,” Mr. Cohen continued. “We look forward to the ultimate resolution of this matter.”
The plaintiff’s claim is essentially that the lessees thought the four-page lease in the form of a booklet was, in reality, only one page long and therefore Northern Leasing Systems’ enforcement of the terms on the other three pages constituted a breach of the contract. The trial judge granted summary judgment to the plaintiff under that theory. Northern Leasing appealed to the Appellate Division, which unanimously reversed.
“On this record, questions of fact exist that preclude granting plaintiffs summary judgment on the breach of contract claim,” the decision reads.
“Specifically, a factfinder must determine 1) whether plaintiffs received only the first page of the form lease or all four pages, and 2) whether, if plaintiffs received all four pages, they could reasonably have believed that all terms were contained on page 1. The latter question cannot be answered as a matter of law in plaintiffs’ favor, given that page 1 of the form lease, which each plaintiff signed, states that it is ‘Page 1 of 4′ and contains a reference, above the lessee’s signature, to paragraph 11, which appears on page 3 of the form. Moreover, the record contains evidence that the form lease each plaintiff signed was printed on one sheet of paper, 11 inches by 17 inches long, folded in half to create a four-page booklet.”
About Northern Leasing Systems, Inc.
Northern Leasing Systems, Inc., http://www.northernleasing.com, founded in 1991, is an established provider of third-party equipment leasing services that enable business owners to finance point-of-sale and other key equipment components of their business operations. The company’s primary focus is to provide financing for the credit card authorization equipment market for small and medium-sized businesses by financing the leasing of equipment selected by its customers from independent equipment suppliers.
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