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Jaz, Inc. v. Foley

Hawaii Intermediate Court of Appeals
85 P.3d 1099 (2004)


Jaz, Inc.; JOZAC, Inc.; and the president and vice presidents of each company (Jaz) (plaintiffs) purchased a Noritsu photo-processing machine for $50,000 from Richard Foley (defendant), who was doing business as Environmental First. The purchase was financed through an equipment finance-lease agreement with First Hawaiian Leasing, Inc. (First HI) (defendant). The terms of the agreement were contained in a Master Lease and various addendums executed by First HI and Jaz. The Master Lease provided that the lessee would bear the risk of loss or damage beginning on the date that the risk of loss passed from the vendor. Jaz signed an undated Acceptance Certificate, but Foley never delivered the Noritsu machine. After completing monthly payments totaling nearly $14,000 to First HI, Jaz filed suit against Foley and First HI. First HI counterclaimed against Jaz and cross-claimed against Foley. The trial court entered default judgments against Foley. Thereafter, the trial court found in favor of First HI on Jaz’s complaint and First HI’s counterclaim. Jaz appealed, contending that Jaz should not be held liable for any losses or payments under the terms of the Master Lease.

Rule of Law


Holding and Reasoning (Foley, J.)

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