Enterprise Leasing Corp. v. Shugart Corp.

Plaintiff, Enterprise Leasing Corporation, appeals from judgment entered against it and in favor of defendant Shugart Corporation (Shugart) after the trial court granted defendant’s motion for nonsuit made at the conclusion of plaintiff’s opening statement.

Facts

Pursuant to a written lease agreement executed on February 21, 1986, (lease), plaintiff leased a computer system and related components (the equipment) to Applied Circuit Technology, Inc. (Applied). The lease was for a term of 60 months and required rental payments of $3,179.21 per month. On April 30, 1987, Applied and Shugart entered into a contract entitled “Asset Purchase Agreement” whereby Applied sold certain assets to Shugart. In the asset purchase agreement Shugart did not expressly assume the lease. After Shugart purchased assets of Applied it used the equipment and made 15 monthly payments of $3,179.21 each to plaintiff for such use. On September 12, 1988, Shugart sold its assets to ACT Technology Corporation (ACT) and entered into a rental agreement with ACT wherein Shugart represented that it owned the equipment and agreed to rent it to ACT for three months at $3,179.21 per month. On January 19,…