§ 336.2A-108 — Unconscionability
Plain-Language Summary
A court can refuse to enforce a lease or lease clause that is unconscionable (extremely unfair). In a consumer lease, the court can also consider whether a clause was induced by unconscionable conduct. If unconscionability is alleged, the parties can present evidence about the commercial context.
336.2A-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), 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, 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), the court may award reasonable attorney’s fees to the lessee.
(b) If the court does not find unconscionability, the court may make an award under section 549.211 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) is not controlling.
History:
1989 c 232 art 1 s 2A-108; 1997 c 213 art 2 s 1
History: History: 1989 c 232 art 1 s 2A-108; 1997 c 213 art 2 s 1