What's New in the Law

NCMIC Finance Corporation v. Brican America, Inc., 2010 WL 543339 (U.S.Dist.Ct. S.D.Fla. Feb. 9, 2010)

In this brief decision the court denies cross motions for summary judgment in a dispute between a finance company and a vendor for which the finance company provided lease financing for the vendor's customers. In the vendor agreement between the two parties, the vendor represented that it had entered into no agreements with lessees other than the lease documents of which the finance company was aware. At some time after the finance company learned that the vendor had entered into undisclosed marketing agreements with the lessees and a third party, the finance company claimed breach of warranty and demanded repurchase of the leases according to the terms of the vendor agreement. The court denies summary judgment to the finance company inasmuch as it finds that there was a genuine issue of material fact as to whether the finance company had waived its right to demand repurchase because it continued to fund leases for some time after learning of the marketing agreements. According to the vendor, the finance company only made its repurchase demand after the finance company's lender expressed a desire for the finance company to diversify its portfolio by reducing its concentration of business with that particular vendor.