Colonial Pacific Leasing Corporation v. McNatt and Datronic Rental Corporation

The McNatts (plaintiffs), operating Quick-Trip Printers, selected equipment based on Itex's representations and entered finance leases with Burnham Leasing containing disclaimer, anti-defense, and hell-or-high-water clauses; Burnham assigned the leases to Colonial Pacific and Datronic (defendants). After Quick-Trip reported malfunctioning equipment, the assignees initially withheld but later paid Itex, and Quick-Trip, which never made lease payments, sued for rescission based on Itex's alleged fraud and for the assignees' allegedly negligent release of funds; the trial court granted the assignees summary judgment on all claims, and the court of appeals reversed in part.