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Next Gen Capital, LLC v. Consumer Lending Associates, LLC

Arizona Court of Appeals
316 P.3d 598 (2013)


Consumer Lending Associates, LLC (Consumer Lending) (defendant) operated under a state statute authorizing payday loans. The statute was set to expire in 2010 via an automatic sunset provision. In 2007 Consumer Lending entered into a five-year lease with Next Gen Capital, LLC (Next Gen) (plaintiff). The lease limited Consumer Lending’s use of the property to short-term loans and check cashing. Prior to the lease term’s expiration, the payday-loan statute expired by way of the automatic sunset. Upon this expiration, Consumer Lending vacated the premises and claimed that the lease had terminated “by operation of Arizona law.” Next Gen sued Consumer Lending for breach of contract. The trial court granted summary judgment to Next Gen. Consumer Lending appealed, arguing that the purpose of the contract was frustrated, excusing its performance.

Rule of Law


Holding and Reasoning (Portley, J.)

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