Case Details

Year Initiated/Committed

1993

Year Resolved

1994

Settlement Amount

n/a

Court

n/a

Docket Number

n/a

Lead State

FL

Participating States

FL

Defendant(s)

Cleanco, Inc., Commercial Laundries, Inc., Commercial SunServices of America, Inc., Jada Rowie Laundries, Tempco, Amerivend Corporation, Laundries of West Florida, Inc

Case Description

As part of a negotiated settlement, the State of Florida sought to enjoin the defendant laundry equipment leasing companies from entering leases containing automatic unilateral renewal provisions, alleging that such provisions foreclosed would-be competitors from maintaining viable competition. In order to resolve the dispute without litigation, defendant laundry companies agreed to refrain from entering such leases, also called Blue Eagle Leases, which contained the unilateral renewal provisions. Also, upon expiration of their current outstanding leases that were in their initial term or in their first renewal period, defendant companies gave the affected lessors the option of entering new leases with other leasing companies or remain with the defendant companies. This option was the result of deleting the unilateral renewal option.