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In re Architectural Millwork of Virginia, Inc.

United States Bankruptcy Court for the Western District of Virginia
226 B.R. 551 (1998)


Darryl Motley went to the Virginia Truck Center in Roanoke, Virginia to buy a truck for Architectural Millwork of Virginia, Inc. (Architectural) (defendant). Architectural entered the Truck Lease Agreement with Associates Leasing, Inc. (Associates) to finance the remaining $38,500 owed on the new Freightliner. The agreement included a final adjustment clause giving Architectural an option to purchase the Freightliner for $9,625, based on the truck’s residual value. Architectural also entered into a Conditional Sales Contract with River Ridge Supply to buy a Komatsu forklift. The Komatsu agreement provided that at the end of the lease term, Architectural could purchase the forklift for $1. River Ridge Supply assigned its interest to Associates. Architectural filed a Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the Western District of Virginia. Associates moved to compel assumption or rejection of the leases and payment of the leases.

Rule of Law


Holding and Reasoning (Anderson, J.)

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