Atel Financial Corp. v. Quaker Coal Co.

FINDINGS OF FACT AND CONCLUSIONS OF LAW, AND JUDGMENT (FRCP 51 & 58)

INTRODUCTION

This action, in essence, is a suit by a leasing company to collect damages from a lessee which allegedly breached a contract between the two parties by retaining leased equipment without making full timely payments. The lessor now seeks to enforce the liquidated damages provision of the lease. The lessee admits that a technical default occurred, but asserts that it cured the default and that any imposition of liquidated damages would be unfair and would unjustly enrich the plaintiff.

The case was tried to the Court without a jury on January 11 and 12, 2000. Having carefully considered the parties’ papers, the oral argument of counsel, the written and oral testimony of all witnesses, all other evidence presented in the case, the parties post-trial briefs, and the record herein, the Court rules that plaintiff is not entitled to liquidated damages, as discussed in detail below.

FACTUAL AND PROCEDURAL BACKGROUND

Plaintiff, Atel Financial Corporation (“Atel”), and defendant, Quaker Coal Company (“Quaker”), entered into a Master Lease Agreement (“the Lease”) on October 22, 1993. (Plaintiffs Exhibit…