Court Opinion

ID: 9728481
Source: CourtListenerOpinion
Date Created: 2023-08-26 14:09:19.457771+00
Date Added: 2024-06-11T18:25:49.092044
License: Public Domain

*243Cynar, J.
(dissenting). I respectfully dissent.
Initially, I must disagree with the facts as stated in the majority opinion. I find more than "some conflicting testimony” that the machines in question malfunctioned recurrently. Likewise, defendants’ testimony indicated that the reason the negotiations for the purchase of the laundry equipment were not consummated was not because of defendants’ refusal to purchase plaintiffs leasehold interest but because of plaintiffs rejection of defendants’ offer.
So too, the majority opinion states that "malfunctioning of the machines was not a relevant feature of the lease”. I disagree. Two documents drafted by plaintiff, the first entitled "Lease Agreement for Installation of Coin Operated Automatic Laundry Equipment”, and the second labeled "Memorandum of Lease”, contained the entire contract of the parties. The former instrument contained a clause which read as follows:
"2. SERVICE, REPAIRS AND MAINTENANCE
"UNITED shall service the equipment and keep same in repair at its expense and shall have the right to remove any of the equipment for repairs when necessary.”
I find that this provision is persuasive evidence that malfunctioning of the laundry equipment was a major consideration of the parties.
However, the majority opinion is correct in concluding that, if this provision was breached, defendants’ remedies did not include right of reentry and forfeiture of the lease, for no express right therefor was reserved in the written agreement. But this necessarily assumes that the lease dealt with real property and that the parties were in a landlord-tenant relationship. I am unable to accept *244this conclusion, in spite of the fact that the form of the agreement would compel it. I am convinced that the agreement was in substance a lease of personal property by defendant as lessee and that the substance should control over the form. Accordingly, I am persuaded that this arrangement was a "transaction in goods” within the meaning of MCL 440.2102; MSA 19.2102, and that Article 2 of the Uniform Commercial Code controls resolution of the parties’ dispute. Under Article 2, it is clear that plaintiff was in breach of the implied warranty of merchantability found in MCL 440.2314; MSA 19.2314. I would find that defendants’ actions in removing the machinery from the laundry room constituted revocation of acceptance under MCL 440.2608; MSA 19.2608, triggering defendants’ rights under MCL 440.2711; MSA 19.2711, and MCL 440.2712; MSA 19.2712. I find nothing unacceptable in defendants’ actions herein under those sections. Additionally, as per the agreement, they were entitled to the monies withheld during the pendency of the litigation. Accordingly, I would affirm the judgment of the court below, with costs and attorney fees.