Practice areas - Equipment Lessors/Lessees

 

Business executives and entrepreneurs

Equipment lessors/lessees

Financial institutions

Real estate developers

Secured creditors/debtors

 

Airplanes. Engines. Machinery.
Contracts can be tricky. Many times seemingly innocuous clauses have undesirable implications or broad clauses need to be narrowly focused.  I enforce contract rights and obligations under leasing contracts for my clients. For some clients, I advise and negotiate, for others I litigate to enforce the contract language.

For example

For an international airline
Problem: A lessor wanted $3.5 million from our client, an international airline, that it claimed had returned an engine in defective condition at the end of a lease.
Strategy: We conducted an extensive investigation into the engine’s condition at the inception of the lease and after the lessor reacquired it. The data we uncovered enabled my litigation team to file a counter-claim to recover millions of dollars from the lessor.We were able to establish that the lessor had sustained no damage since the defective conditions had existed at the outset of the lease. In addition, the lessor sold the engine for approximately $3.3 million without making any repairs at the expiration of the lease.
Result: The client did not have to pay the $3.5 million claim and was awarded a multimillion dollar judgment against the lessor for its actions. In addition, the client was also entitled to recover the attorneys’ fees it had incurred in defending against the claims of the lessor.

For an equipment lessor
Problem: A foreign equipment (aircraft) lessor had declared the lessee in default and sought to recover the amounts due under the lease plus its equipment [an airplane that was not located in New York].
Strategy. We contacted out of state counsel and developed an argument that would enable the client to obtain a court order so that a sheriff or marshal could take possession of the aircraft pending outcome of lawsuit in foreign court.
Result. Our client was able to negotiate a resolution of the matter without incurring significant legal fees and costs.

 

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