CopyCited 4 times | Published | District Court, S.D. Florida | 2004 U.S. Dist. LEXIS 7448, 2004 WL 943209
...e transactions. See FLA STAT. §
680.1021 ("This chapter applies to any transaction, regardless of form, that creates a lease."). The applicable UCC provisions that set forth a lessor's remedies upon a lessee's default are Sections
680.523,
680.527,
680.528,
680.53, and
680.532....
...the value of the whole lease contract is substantially impaired (s.680.51), the lessee is in default under the lease contract; and the lessor may (a) Cancel the lease contract (s.680.505(1)); * * * * * * (e) Dispose of the goods and recover damages (s.680.527), or retain the goods and recover damages (s.680.528), ...; or (f) Exercise any other rights or pursue any other remedies provided in the lease contract....
...(emphasis added). Section
680.527(1) permits the lessor, after a default by a lessee, to "dispose of the goods concerned or the undelivered balance thereof by lease, sale or otherwise." If the disposition is by sale, the lessor may recover from the lessee under Section
680.528 as if the lessor had elected not to *1339 dispose of the goods. Section
680.528(1)(c) provides that a lessor may recover (1) "[a]ny incidental damages allowed under s.
680.53, less expenses saved in consequence of the lessee's default;" and Section
680.528(2) provides that "[i]f the measure of damages provided in subsection (1) is inadequate to put a lessor in as good a position as performance would have, the measure of damages is the present value of the profit, including reasonable ov...
...A correct measure of damages is that amount that would make the "work performed or article furnished conform to the contract." Id. AAR would also not be entitled to recover the $1,511,000 payment under UCC law. Neither contract law nor the UCC permits lessors to recover without showing actual damages. [9] Under Section *1343 680.528, AAR is entitled to any commercially reasonable charges or expenses incurred in connection with disposition of the Engine, or otherwise resulting from the default, less expenses saved in consequence of the default....
