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.
411.528 History
History: 1991 a. 148.
411.529
411.529
Lessor's action for the rent. 411.529(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, if the lessor complies with
sub. (2), all of the following apply:
411.529(1)(a)
(a) For goods accepted by the lessee and not repossessed by or tendered to the lessor and for conforming goods lost or damaged within a commercially reasonable time after risk of loss passes to the lessee, the lessor may recover from the lessee as damages accrued and unpaid rent as of the date of entry of judgment in favor of the lessor, the present value as of the same date of the rent for the then remaining lease term of the lease agreement, and any incidental damages allowed under
s. 411.530, less expenses saved in consequence of the lessee's default.
411.529(1)(b)
(b) For goods identified to the lease contract if the lessor is unable after reasonable effort to dispose of them at a reasonable price or the circumstances reasonably indicate that that effort will be unavailing, the lessor may recover from the lessee as damages accrued and unpaid rent as of the date of entry of judgment in favor of the lessor, the present value as of the same date of the rent for the then remaining lease term of the lease agreement, and any incidental damages allowed under
s. 411.530, less expenses saved in consequence of the lessee's default.
411.529(2)
(2) Except as provided in
sub. (3), the lessor shall hold for the lessee for the remaining lease term of the lease agreement any goods that have been identified to the lease contract and are in the lessor's control.
411.529(3)
(3) The lessor may dispose of the goods at any time before collection of the judgment for damages obtained under
sub. (1). If the disposition is before the end of the remaining lease term of the lease agreement, the lessor's recovery against the lessee for damages is governed by
s. 411.527 or
411.528, and the lessor will cause an appropriate credit to be provided against a judgment for damages to the extent that the amount of the judgment exceeds the recovery available under
s. 411.527 or
411.528.
411.529(4)
(4) Payment of the judgment for damages obtained under
sub. (1) entitles the lessee to the use and possession of the goods not then disposed of for the remaining lease term of and in accordance with the lease agreement.
411.529(5)
(5) 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, a lessor who is held not entitled to rent under this section shall nevertheless be awarded damages for nonacceptance under
s. 411.527 or
411.528.
411.529 History
History: 1991 a. 148.
411.530
411.530
Lessor's incidental damages. Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the lessee's default, in connection with return or disposition of the goods, or otherwise resulting from the default.
411.530 History
History: 1991 a. 148.
411.531
411.531
Standing to sue 3rd parties for injury to goods. 411.531(1)(1) If a 3rd party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract, all of the following apply:
411.531(1)(a)
(a) The lessor has a right of action against the 3rd party.
411.531(1)(b)
(b) The lessee also has a right of action against the 3rd party if any of the following occurs:
411.531(1)(b)3.
3. The lessee bears the risk of loss under the lease contract or has since the injury assumed that risk as against the lessor and the goods have been converted or destroyed.
411.531(2)
(2) If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery, his or her suit or settlement, subject to his or her own interest, is as a fiduciary for the other party to the lease contract.
411.531(3)
(3) Either party with the consent of the other may sue for the benefit of whom it may concern.
411.531 History
History: 1991 a. 148.
411.532
411.532
Lessor's rights to residual interest. In addition to any other recovery permitted by this chapter or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee.
411.532 History
History: 1991 a. 148.
TRANSITIONAL PROVISIONS
411.901
411.901
Applicability; written agreement to modify. 411.901(1)(1) This chapter applies to a lease contract that is entered into on or after July 1, 1992.
411.901(2)
(2) This chapter applies to a lease contract that is entered into before July 1, 1992, or to a modification, extension or renewal of such a lease contract, if the parties agree in writing that the lease contract shall be governed by this chapter.
411.901 History
History: 1991 a. 148.
