PING: Injection MoldingURL: http://www.findinjectionmolding.info/IP: 74.52.217.2BLOG NAME: Injection MoldingDATE: 01/14/2007 10:23:46 AMEnter the machine cost of operation, estimated downtime Metal injection m

A seller of injection molding machinery was out of luck in its claim against the purchasing finance lessor becauset he lease document was never signed, according to a federal court in Illinois.

Lessee Style Master wanted to lease five machines manufactured by Engel Machinery.  It struck a deal with Wells Fargo Equipment Finance under which Wells Fargo would buy the machines and then lease them to Style Master.  Wells Fargo had specified that its commitment expired December 28.  Engel delivered the machines to Style Master before that time but installation took some time and the machines were not accepted by Style Master until January.  At this point Wells Fargo said that it would not pay for the machines, claiming its commitment had expired before the machines were installed.  After Style Master went bankrupt, Engel sued Wells Fargo.

Engel alleged both breach of contract and promissory estoppel, but Judge Matthew Kennely held that under the Illinois Credit Agreement Act both causes of action failed.  Although this appeared to be a simple purchase by Wells Fargo from Engel, the court held that it was part of a larger credit transaction.  The ICAA provides that credit transactions are not enforceable unless they are in writing and signed by the party to be charged. Since Wells Fargo never signed the lease, it never became bound.

Nor, said the court, could Engel use promissory estoppel to get around the specific requirements of the ICAA.  Engel Machinery, Inc. v. Wells Fargo Equipment. Finance, Inc., 2004 U.S. Dist. LEXIS 23895 (N.D. Ill. Nov. 29, 2004)