411.516(3)(c)
(c) The burden is on the lessee to establish any default.
411.516(4)
(4) If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over, all of the following apply:
411.516(4)(a)
(a) The lessee may give the lessor or the supplier, or both, written notice of the litigation. If the notice states that the person notified may come in and defend and that if the person notified does not do so that person will be bound in any action against that person by the lessee by any determination of fact common to the 2 litigations, then, unless the person notified after seasonable receipt of the notice does come in and defend, that person is so bound.
411.516(4)(b)
(b) The lessor or the supplier may demand in writing that the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like or else be barred from any remedy over. If the demand states that the lessor or the supplier agrees to bear all expense and to satisfy any adverse judgment, then, unless the lessee after seasonable receipt of the demand does turn over control, the lessee is so barred.
411.516(5)
(5) Subsections (3) and
(4) apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like.
411.516 History
History: 1991 a. 148.
411.517
411.517
Revocation of acceptance of goods. 411.517(1)
(1) A lessee may revoke acceptance of a lot or commercial unit the nonconformity of which substantially impairs its value to the lessee if any of the following occurs:
411.517(1)(a)
(a) Except in the case of a finance lease, the lessee accepted the lot or commercial unit on the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured.
411.517(1)(b)
(b) The lessee accepted the lot or commercial unit without discovery of the nonconformity if the lessee's acceptance was reasonably induced either by the lessor's assurances or, except in the case of a finance lease, by the difficulty of discovery before acceptance.
411.517(2)
(2) Except in the case of a finance lease that is not a consumer lease, a lessee may revoke acceptance of a lot or commercial unit if the lessor defaults under the lease contract and the default substantially impairs the value of that lot or commercial unit to the lessee.
411.517(3)
(3) If the lease agreement so provides, the lessee may revoke acceptance of a lot or commercial unit because of other defaults by the lessor.
411.517(4)
(4) Revocation of acceptance shall occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in the condition of the goods that is not caused by the nonconformity. Revocation is not effective until the lessee notifies the lessor.
411.517(5)
(5) A lessee who revokes under this section has the same rights and duties with regard to the goods involved as if the lessee had rejected them.
411.517 History
History: 1991 a. 148.
411.518
411.518
Cover; substitute goods. 411.518(1)
(1) After a default by a lessor under the lease contract of the type described in
s. 411.508 (1), or, if agreed, after other default by the lessor, the lessee may cover by making any purchase or lease of or contract to purchase or lease goods in substitution for those due from the lessor.
411.518(2)
(2) Except as otherwise provided with respect to damages liquidated in the lease agreement or otherwise determined pursuant to agreement of the parties, if a lessee's cover is by a lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner, the lessee may recover from the lessor as damages the present value, as of the date of the commencement of the term of the new lease agreement, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement minus the present value as of the same date of the total rent for the then remaining lease term of the original lease agreement and any incidental or consequential damages, less expenses saved in consequence of the lessor's default.
411.518(3)
(3) If a lessee's cover is by lease agreement that for any reason does not qualify under
sub. (2), or is by purchase or otherwise, the lessee may recover from the lessor as if the lessee had elected not to cover and
s. 411.519 governs.
411.518 History
History: 1991 a. 148.
411.519
411.519
Lessee's damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods. 411.519(1)(1) Except as otherwise provided with respect to damages liquidated in the lease agreement or otherwise determined pursuant to agreement of the parties, if a lessee elects not to cover or a lessee elects to cover and the cover is by lease agreement that does not qualify under
s. 411.518 (2), or is by purchase or otherwise, the measure of damages for nondelivery or repudiation by the lessor or for rejection or revocation of acceptance by the lessee is the present value, as of the date of the default, of the then market rent minus the present value as of the same date of the original rent, computed for the remaining lease term of the original lease agreement, together with incidental and consequential damages, less expenses saved in consequence of the lessor's default.
411.519(2)
(2) Market rent is determined as of the place for tender or, in cases of rejection after arrival or revocation of acceptance, as of the place of arrival.
411.519(3)
(3) Except as otherwise agreed, if the lessee has accepted goods and given notification, the measure of damages for nonconforming tender or delivery or other default by a lessor is the loss resulting in the ordinary course of events from the lessor's default as determined in any manner that is reasonable together with incidental and consequential damages, less expenses saved in consequence of the lessor's default.
411.519(4)
(4) Except as otherwise agreed, the measure of damages for breach of warranty is the present value at the time and place of acceptance of the difference between the value of the use of the goods accepted and the value if they had been as warranted for the lease term, unless special circumstances show proximate damages of a different amount, together with incidental and consequential damages, less expenses saved in consequence of the lessor's default or breach of warranty.
411.519 History
History: 1991 a. 148.
411.520
411.520
Lessee's incidental and consequential damages. 411.520(1)(1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses or commissions in connection with effecting cover, and any other reasonable expense incident to the default.
411.520(2)
(2) Consequential damages resulting from a lessor's default include all of the following:
411.520(2)(a)
(a) Any loss resulting from general or particular requirements and needs of which the lessor at the time of contracting had reason to know and that could not reasonably be prevented by cover or otherwise.
411.520(2)(b)
(b) Injury to person or property proximately resulting from any breach of warranty.
411.520 History
History: 1991 a. 148.
411.521
411.521
Lessee's right to specific performance or replevin. 411.521(1)(1) Specific performance may be decreed if the goods are unique or may be decreed in other proper circumstances.
411.521(2)
(2) A decree for specific performance may include any terms and conditions as to payment of the rent, damages or other relief that the court considers just.
411.521(3)
(3) A lessee has a right of replevin, claim and delivery, or the like for goods identified to the lease contract if after reasonable effort the lessee is unable to effect cover for those goods or the circumstances reasonably indicate that the effort will be unavailing.
411.521 History
History: 1991 a. 148.
411.522
411.522
Lessee's right to goods on lessor's insolvency. 411.522(1)(1) Subject to
sub. (2) and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within 10 days after receipt of the first instalment of rent and security.
411.522(2)
(2) A lessee acquires the right to recover goods identified to a lease contract only if they conform to the lease contract.
411.522 History
History: 1991 a. 148.
411.523(1)(1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and with respect to all of the goods if under an instalment lease contract the value of the whole lease contract is substantially impaired, the lessee is in default under the lease contract and the lessor may do any of the following:
411.523(1)(b)
(b) Proceed respecting goods not identified to the lease contract.
411.523(1)(c)
(c) Withhold delivery of the goods and take possession of goods previously delivered.
411.523(1)(e)
(e) Dispose of the goods and recover damages, or retain the goods and recover damages, or in a proper case recover rent.
411.523(1)(f)
(f) Exercise any other rights or pursue any other remedies provided in the lease contract.
411.523(2)
(2) If a lessor does not fully exercise a right or obtain a remedy to which the lessor is entitled under
sub. (1), the lessor may recover the loss resulting in the ordinary course of events from the lessee's default as determined in any reasonable manner, together with incidental damages, less expenses saved in consequence of the lessee's default.
411.523(3)
(3) If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease. In addition, unless otherwise provided in the lease contract the lessor may do any of the following:
411.523(3)(a)
(a) If the default substantially impairs the value of the lease contract to the lessor, exercise the rights and pursue the remedies provided in
sub. (1) or
(2).
411.523(3)(b)
(b) If the default does not substantially impair the value of the lease contract to the lessor, recover as provided in
sub. (2).
411.523 History
History: 1991 a. 148.
411.524
411.524
Lessor's right to identify goods to lease contract. 411.524(1)(1) After default by the lessee under the lease contract of the type described in
s. 411.523 (1) or
(3) (a) or, if agreed, after other default by the lessee, the lessor may do any of the following:
411.524(1)(a)
(a) Identify to the lease contract conforming goods not already identified if, when the lessor learned of the default, they were in the lessor's or the supplier's possession or control.
411.524(1)(b)
(b) Dispose of goods that demonstrably have been intended for the particular lease contract even though those goods are unfinished.
411.524(2)
(2) If the goods are unfinished, in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization, an aggrieved lessor or the supplier may complete manufacture and wholly identify the goods to the lease contract, cease manufacture and lease, sell or otherwise dispose of the goods for scrap or salvage value or proceed in any other reasonable manner.
411.524 History
History: 1991 a. 148.
411.525
411.525
Lessor's right to possession of goods. 411.525(1)
(1) If a lessor discovers that the lessee is insolvent, the lessor may refuse to deliver the goods.
411.525(2)
(2) After a default by the lessee under the lease contract of the type described in
s. 411.523 (1) or
(3) (a) or, if agreed, after other default by the lessee, the lessor has the right to take possession of the goods. If the lease contract so provides, the lessor may require the lessee to assemble the goods and make them available to the lessor at a place designated by the lessor that is reasonably convenient to both parties. Without removal, the lessor may render unusable any goods employed in trade or business, and may dispose of goods on the lessee's premises.
411.525(3)
(3) The lessor may proceed under
sub. (2) without judicial process if it can be done without breach of the peace or the lessor may proceed by action.
411.525 History
History: 1991 a. 148.
411.526
411.526
Lessor's stoppage of delivery in transit or otherwise. 411.526(1)(1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers that the lessee is insolvent and may stop delivery of carload, truckload, planeload or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
411.526(2)
(2) In pursuing its remedies under
sub. (1), the lessor may stop delivery until any of the following occurs:
411.526(2)(b)
(b) Acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee.
411.526(2)(c)
(c) Acknowledgment to the lessee by a carrier via reshipment or as warehouse keeper that the carrier holds the goods for the lessee.
411.526(3)(a)(a) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
411.526(3)(b)
(b) After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
411.526(3)(c)
(c) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
411.526 History
History: 1991 a. 148.
411.527
411.527
Lessor's rights to dispose of goods. 411.527(1)
(1) After a default by a lessee under the lease contract of the type described in
s. 411.523 (1) or
(3) (a) or after the lessor refuses to deliver or takes possession of goods, or, if agreed, after other default by a lessee, the lessor may dispose of the goods concerned or the undelivered balance of the goods by lease, sale or otherwise.
411.527(2)
(2) Except as otherwise provided with respect to damages liquidated in the lease agreement or otherwise determined pursuant to agreement of the parties, if the disposition is by lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner, the lessor may recover from the lessee as damages accrued and unpaid rent as of the date of the commencement of the term of the new lease agreement, the present value, as of the same date, of the total rent for the then remaining lease term of the original lease agreement minus the present value, as of the same date, of rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement, and any incidental damages allowed under
s. 411.530, less expenses saved in consequence of the lessee's default.
411.527(3)
(3) If the lessor's disposition is by lease agreement that does not qualify under
sub. (2), or is by sale or otherwise, the lessor may recover from the lessee as if the lessor had elected not to dispose of the goods and
s. 411.528 governs.
411.527(4)
(4) A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and of any rights of the original lessee even though the lessor fails to comply with one or more of the requirements of this chapter.
411.527(5)
(5) The lessor is not accountable to the lessee for any profit made on any disposition. A lessee who rightfully rejects or justifiably revokes acceptance shall account to the lessor for any excess over the amount of the lessee's security interest.
411.527 History
History: 1991 a. 148.
411.528
411.528
Lessor's damages for nonacceptance, failure to pay, repudiation or other default. 411.528(1)
(1) Except as otherwise provided with respect to damages liquidated in the lease agreement or otherwise determined pursuant to agreement of the parties, if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement that does not qualify under
s. 411.527 (2), or is by sale or otherwise, the lessor may recover from the lessee all of the following as damages for a default of the type described in
s. 411.523 (1) or
(3) (a), or, if agreed, for other default of the lessee:
411.528(1)(a)
(a) Accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods, or, if the lessee has taken possession of the goods, as of the date that the lessor repossesses the goods or an earlier date on which the lessee makes a tender of the goods to the lessor.
411.528(1)(b)
(b) The present value as of the date determined under
par. (a) of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place where the goods are located computed for the same lease term.
411.528(1)(c)
(c) Any incidental damages allowed under
s. 411.530, less expenses saved in consequence of the lessee's default.
411.528(2)
(2) If the measure of damages provided in
sub. (1) is inadequate to put a lessor in as good a position as performance would have, the measure of damages is the present value of the profit, including reasonable overhead, that the lessor would have made from full performance by the lessee, together with any incidental damages allowed under
s. 411.530, due allowance for costs reasonably incurred and due credit for payments or proceeds of disposition.
