Triple C. Leasing, Inc. v. All-American Mobile Wash

This appeal turns on the question whether a transaction between appellants All-American Mobile Wash, et al. and respondent Triple C. Leasing, Inc. was a true chattel lease, as found by the trial court, or a security transaction governed by the Uniform Commercial Code, as contended by appellants.

Respondent obtained from Equipment Sales and Service (hereinafter “ESS”) a van containing apparatus for washing large trucks. The price of the van was $10,400. Documents were executed whereby respondent purportedly leased the equipment to appellants for the sum of $15,033.20 to be paid over a period of 60 months. Although the lease did not contain any provision for an option to purchase the mobile van, respondent informed appellants by letter that at the end of the 60 months appellants would be entitled to return the equipment to respondent, continue a lease of the equipment at the rate of 1 percent of the original cost of the equipment per month, or purchase the equipment for 10 percent of the original cost ($1,040). The printed lease form contained a recital that respondent was not “the purchaser, manufacturer, retailer or distributor” of the van. It was claimed in behalf of…