Question: CIT entered into a sale leaseback contract with Condere Tire Corporation

CIT entered into a sale/leaseback contract with Condere Tire Corporation for 11 tire presses at Condere's tire plant in Natchez, Mississippi. Condere ceased making payments on these presses owned by CIT, and Condere filed for Chapter 11 bankruptcy. CIT thereafter contracted to sell the presses to Specialty Tires Inc., for $250,000. When the contract was made, CIT, Condere, and Specialty Tire believed that CIT was the owner of the presses and was entitled to immediate possession. When CIT attempted to gain access to the presses to have them shipped, Condere changed its position and refused to allow the equipment to be removed from the plant. When the presses were not delivered, Specialty sued CIT for damages for nondelivery of the presses,and CIT asserted the defense of impracticability. Decide. [Specialty Tires, Inc. v. CIT, 82 F. Supp. 2d 434 (W.D. Pa.)]

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  • CreatedJune 06, 2014
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