Taylor v. Commercial Credit Equipment Corporation

Deen, Presiding Judge.

The defendant appeals a summary judgment for the plaintiff in an action to recover damages for the defendant’s default in making payments required under a lease agreement pertaining to an irrigation system. At issue is whether the provisions of the lease purporting to specify the damages due on default are valid or whether they constitute an unenforceable penalty.

The lease calls for the defendant to pay a total of $97,554 in 10 annual installments of $9,755.40 each. He defaulted after making two payments, and the irrigation equipment was subsequently repossessed and sold…