645 P.2d 868 (Colo.App. 1982), 81CA0142, New Sheridan Hotel & Bar, Ltd. v. Commercial Leasing Corp., Inc.

• Judge: VAN CISE and TURSI, JJ., concur.
• Parties: NEW SHERIDAN HOTEL & BAR, LTD., Plaintiff-Appellant, v. COMMERCIAL LEASING CORPORATION, INC., a Colorado corporation, Defendant-Appellee.
• Docket Number: 81CA0142.
• Citation: 645 P.2d 868
• Court: Court of Appeals of Colorado. First Division
• Date: 29 April 1982

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645 P.2d 868 (Colo.App. 1982)

NEW SHERIDAN HOTEL & BAR, LTD., Plaintiff-Appellant,

v.

COMMERCIAL LEASING CORPORATION, INC., a Colorado corporation, Defendant-Appellee.

No. 81CA0142.

Court of Appeals of Colorado, First Division

April 29, 1982

Hamilton, Hamilton, Shand & McLachlan, P.C., Michael E. McLachlan, Durango, for plaintiff-appellant.

Kent F. Williamson, Cortez, for defendant-appellee.

COYTE, Judge.

Plaintiff appeals from the entry of a judgment denying relief on its complaint and the entry of a judgment against plaintiff on defendant's counterclaim. We affirm.

Marketing Department, Inc., (Marketing) was in the business of selling telephone systems. It would contract and complete the installation of the equipment under a lease purchase agreement in the lessee's place of business, and then find a company to purchase the installed equipment under the lease agreement.

Defendant, Commercial Leasing Corporation, Inc., (Leasing) was organized for the

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purpose of acquiring and leasing already installed telephone equipment.

Plaintiff contracted with Marketing to install a telephone system in its new hotel. After the system had been installed, Marketing sold the equipment to Leasing who then entered into a new lease with plaintiff. Thereafter, plaintiff complained that the equipment did not operate properly as was represented, and that it was not properly installed. It then filed suit seeking rescission of the leasing agreement. Leasing answered denying that it was liable for any representations made by Marketing to plaintiff. It also filed a counterclaim alleging that plaintiff was in default under the leasing agreement and sought to accelerate the payments required under the lease and to recover attorney fees as provided in the lease agreement.

The trial court found that there was no working relationship between Marketing and Leasing, that Leasing was not responsible for the installation of the telephone equipment, and that plaintiff was in default under the lease. Consequently, it ordered acceleration of the lease payments and payment of attorney fees.

Plaintiff first contends that the evidence fails to support the findings of the trial court that there was not such a close relationship between Leasing and Marketing as would make Leasing liable to plaintiff for representations made by Marketing. We disagree.

Before one corporation may be held liable for the acts of another...