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Unconscionability in a Commercial Setting

Imaging Financial Services, Inc. v. Graphic Arts Services, Inc., 172 F.R.D. 322 (N.D.Ill. 3/28/97). UNCONSCIONABILITY - Graphics Arts leased various pieces of equipment from Imaging. The obligation to pay was unconditional and there were the usual conspicuous disclaimers of any implied warranties. When the equipment malfunctioned, Graphic Arts refused to make further payments. Imaging brought this action for damages and was granted summary judgment. The hell or high water clause and warranty disclaimers were upheld BUT this case is notable because of Graphic Arts' attempt to claim that the lease contracts were UNCONSCIONABLE. The court ruled "The Doctrine of Unconscionability is rarely applied in a commercial setting." Prediction: This will not be the last time we hear about unconscionability in the context of form lease documentation.

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