TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 12

UNIFORM COMMERCIAL CODE — LEASES

PART 1.

GENERAL PROVISIONS

28-12-108.  Unconscionability. (1) If the court as a matter of law finds a lease contract or any clause of a lease contract to have been unconscionable at the time it was made the court may refuse to enforce the lease contract, or it may enforce the remainder of the lease contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.

(2)  With respect to a consumer lease, if the court as a matter of law finds that a lease contract, or any clause of a lease contract, has been induced by unconscionable conduct or that unconscionable conduct has occurred in the collection of a claim arising from a lease contract, the court may grant appropriate relief.

(3)  Before making a finding of unconscionability under subsection (1) or (2) of this section, the court, on its own motion or that of a party, shall afford the parties a reasonable opportunity to present evidence as to the setting, purpose and effect of the lease contract or clause thereof, or of the conduct.

(4)  In an action in which the lessee claims unconscionability with respect to a consumer lease:

(a)  If the court finds unconscionability under subsection (1) or (2) of this section, the court shall award reasonable attorney’s fees to the lessee.

(b)  If the court does not find unconscionability and the lessee claiming unconscionability has brought or maintained an action he knew to be groundless, the court shall award reasonable attorney’s fees to the party against whom the claim is made.

(c)  In determining attorney’s fees, the amount of the recovery on behalf of the claimant under subsections (1) and (2) of this section is not controlling.

History:

[28-12-108, added 1993, ch. 287, sec. 1, p. 982.]