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BMW Financial Services v. Smoke Rise Corp.

Georgia Court of Appeals
486 S.E.2d 629 (1997)


Smoke Rise Corporation (Smoke Rise) (defendant) leased a car from BMW Financial Services (BMW) (plaintiff). The lease required that, at the lease’s termination, Smoke Rise pay 15 cents for every mile the car was driven over 85,011 miles. In the alternative, Smoke Rise would have the option to purchase the car for $16,863. Smoke Rise returned the car at the end of the lease with 180,409 miles. Smoke Rise declined to purchase the vehicle. However, Smoke Rise also refused to pay the excess-mileage fee of $14,309. BMW sued Smoke Rise, seeking: (1) to enforce the excess-mileage provision of the lease and (2) attorneys’ fees. Smoke Rise argued that the excess-mileage fee provision was unconscionable because the provision required Smoke Rise to pay a fee nearly equal to the buy-out price of the vehicle and far exceeded the actual value of the vehicle. BMW moved for summary judgment. The trial court denied BMW’s motion, and BMW filed an application for an interlocutory appeal. The Georgia Court of Appeals agreed to hear the appeal.

Rule of Law


Holding and Reasoning (Pope, J.)

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