Free Other Notice - District Court of Arizona - Arizona

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA CITICAPITAL TECHNOLOGY FINANCE, INC., formerly known as EAB Leasing Corp., a Pennsylvania corporation, and CITICAPITAL COMMERCIAL LEASING CORPORATION, formerly known as Associates Leasing, Inc., an Indiana corporation, Plaintiffs, vs. GRANT H. GOODMAN AND TERI B. GOODMAN, husband and wife, Defendants. This matter having come on regularly for trial to the Court on ___________, 2006, and the Court having considered the testimony received and the exhibits admitted into evidence, and being fully advised in the premises, hereby makes the following findings of fact and conclusions of law, pursuant to Rule 52(a), F.R.C.P.: I. FINDINGS OF FACT 1. Under an agreement sometimes designated as Lease No. 005-0515121-000 Case No. CV03-01587 PHX JAT PLAINTIFFS PROPOSED
FINDINGS OF FACT AND CONCLUSIONS OF LAW

("Lease No. 121"), executed by GTI Capital Holdings, LLC, dba Rockland Materials ("GTI"), and thereafter executed by U.S. Bancorp Leasing and Financial ("USB"), USB financed GTI's

Case 2:03-cv-01587-JAT

Document 58-3

Filed 01/09/2006

Page 1 of 16

acquisition of certain equipment in exchange for GTI's promise to make sixty (60) monthly payments in the amount of $3,503.18. 2. Under an agreement sometimes designated as Lease No. 005-0515122-000

("Lease No. 122"), executed by GTI, and thereafter executed by USB, USB financed GTI's acquisition of certain equipment in exchange for GTI's promise to make thirty-sixty (36) monthly payments in the amount of $3,550.14. 3. The equipment that was the subject of Lease No. 121 was delivered to GTI. That

delivery was confirmed by GTI's execution of a Delivery And Acceptance Certificate (the "Lease 121 Acceptance Receipt"). 4. The equipment that was the subject of Lease No. 122 was delivered to GTI. That

delivery was confirmed by GTI's execution of a Delivery And Acceptance Certificate (the "Lease 122 Acceptance Receipt"). 5. Under Lease Nos. 121 and 122, GTI agreed to lease from USB the following

described personal property: LEASE NO. LEASED EQUIPMENT DESCRIPTION VEHICLE IDENTIFICATION #/ SERIAL NUMBER 5DMDSABD01M000216 5DMDSABD01M000217 5DMDSABD01M000218 5DMDSABD01M000219

005-0515121-000 Four (4) 2001 Benson 27' Aluminum Dump Trailers 005-0515122-000 Four (4)1996 Kenworth T800 Tractors

1XKDDE9X2TJ723029 1XKDDE9X0TJ723031 1XKDDE9XXTJ723473 1XKDDE9X1TJ723474 (sometimes hereafter collectively the "Lease No. 121 and 122 Equipment") 6. In order to induce USB to enter into Lease nos. 121 and 122 (the "Grant Goodman

Guaranty of Lease Nos. 121 and 122"), Defendant Grant Goodman, a principal and member of
2 Document 58-3

Case 2:03-cv-01587-JAT

Filed 01/09/2006

Page 2 of 16

GTI, guaranteed Lease nos. 121 and 122. By executing said guaranty, Defendant Grant Goodman guaranteed all payments, charges and obligations due under Lease nos. 121 and 122. 7. USB assigned Lease no. 121, the Lease No. 121 Equipment, and the Grant

Goodman guaranty of Lease no. 121 to CitiCapital Technology. CitiCapital Technology is the owner and holder of Lease no. 121, the Lease No. 121 Equipment, and the Grant Goodman guaranty of Lease no. 121. 8. USB assigned Lease no. 122, the Lease No. 122 Equipment, and the Grant

Goodman guaranty of Lease no. 122 to CitiCapital Technology. CitiCapital Technology is the owner and holder of Lease no. 122, the Lease No. 122 Equipment, and the Grant Goodman guaranty of Lease no. 122. 9. Lease Nos. 121 and 122 went into default for the failure to pay the monthly rent

due in April, 2003 and remain in default. 10. Pursuant to the terms of Lease Nos. 121 and 122 upon default, CitiCapital

Technology is entitled to immediate possession of the Lease No. 121 and 122 Equipment and is entitled to sell or otherwise dispose of it and apply the proceeds of any such disposition to the indebtedness of GTI to CitiCapital Technology. 11. Following the entry of a bankruptcy Court Order in the case of In re: GTI Capital

Holdings, LLC/G.H. Goodman Investments Companies, L.L.C., pending in the United States Bankruptcy Court for the District of Arizona, Case Nos. 2-03-07923 through 2-03-7924 (the "GTI bankruptcy case") authorizing CitiCapital Technology's recovery of the Lease No. 121 and 122 Equipment, CitiCapital Technology provided notice to all parties of the sale of the Lease No. 121 and 122 Equipment.
3 Document 58-3

Case 2:03-cv-01587-JAT

Filed 01/09/2006

Page 3 of 16

12.

As of the date of its recovery and sale, the fair market value of the Lease No. 121

and 122 Equipment did not exceed $104,750.00. 13. After extensive remarketing of the Lease No. 121 Equipment, One (1) 2001

Benson 27' Aluminum Dump Trailer bearing serial #5DMDSABD01M000219 was sold at public auction and the balance of said equipment was sold by private sale. The date and gross amount received from said sales is set forth below: LEASE NO. LEASED EQUIPMENT DESCRIPTION VEHICLE IDENTIFICATION SALE PRICE AND DATE #/ SERIAL NUMBER 5DMDSABD01M000216 5DMDSABD01M000217 5DMDSABD01M000218 5DMDSABD01M000219 $21,000 2/23/04 $21,000 2/23/04 $21,000 2/23/04 $12,500 6/22/04

005One (1) 2001 Benson 27' 0515121- Aluminum Dump Trailer 000 005One (1) 2001 Benson 27' 0515121- Aluminum Dump Trailer 000 005One (1) 2001 Benson 27' 0515121- Aluminum Dump Trailer 000 005515121000 One (1) 2001 Benson 27' Aluminum Dump Trailer

14.

After extensive remarketing of the Lease No. 122 Equipment, it was sold at public

auction. The date and gross amount received from the public auction sale(s) is set forth below:

LEASE NO.

LEASED EQUIPMENT DESCRIPTION

VEHICLE IDENTIFICATION #/ SERIAL NUMBER

SALE PRICE AND DATE $11,500 2/10/04 $5,750 2/10/04 $5,500
Page 4 of 16

005One (1) 1996 Kenworth T800 1XKDDE9X2TJ723029 0515122- Tractor 000 005One (1) 1996 Kenworth T800 1XKDDE9X0TJ723031 0515122- Tractor 000 005One (1) 1996 Kenworth T800 1XKDDE9XXTJ723473
Case 2:03-cv-01587-JAT 4 Document 58-3 Filed 01/09/2006

0515122- Tractor 000 005One (1) 1996 Kenworth T800 1XKDDE9X1TJ723474 0515122- Tractor 000 15.

2/10/04 $6,500 2/10/04

Under the express provisions of Lease nos. 121 and 122 and the Grant Goodman

guaranty of Lease nos. 121 and 122, Defendant Grant Goodman agreed to pay CitiCapital Technology its reasonable attorney's fees, as well as all other expenses incurred by Plaintiff in connection with the enforcement of any of its remedies. Defendant Grant Goodman is therefore liable to CitiCapital Technology for such charges pursuant to the terms of Lease nos. 121 and 122 and the Grant Goodman guaranty of Lease Nos. 121 and 122. 16. CitiCapital Technology is an equipment leasing company, providing financing to

end users of equipment. Under CitiCapital Technology's typical financing arrangement, it is contacted by an end user (directly or through an intermediary) who makes application to CitiCapital Technology to provide financing for the end user's acquisition of a particular item (or items) of equipment ­ that financing typically taking the form of a "lease. 17. If financing is approved, CitiCapital Technology then purchases the equipment

which the end user has specifically designated, purchasing only from a supplier (or suppliers) also specifically designated by the end user. 18. The end user is informed that: (a) CitiCapital Technology will not consummate its

purchase of the equipment unless and until that equipment is delivered and/or installed to the end user's satisfaction; and (b) CitiCapital Technology will rely upon the end user's written verification of such satisfactory delivery and/or installation before consummating its purchase of the equipment.
5 Document 58-3

Case 2:03-cv-01587-JAT

Filed 01/09/2006

Page 5 of 16

19.

The transactions giving rise to Lease Nos. 005-0515468-000 ("Lease No. 468")

and Lease no. 005-0515548-000 ("Lease No. 548") were in keeping with the usual customs and practices of CitiCapital Technology. 20. Sometime prior to November 13, 2000, GTI formally offered to lease the

equipment that is the subject of Lease No. 468 from CitiCapital Technology. Said offer was presented in the form of an equipment lease. 21. Sometime prior to November 13, 2000, GTI formally offered to lease the

equipment that is the subject of Lease No. 548 from CitiCapital Technology. Said offer was presented in the form of an equipment lease. 22. To induce CitiCapital Technology to enter into Lease Nos. 468 and 548,

Defendant Grant Goodman executed a guaranty (the "Grant Goodman Guaranty of Lease Nos. 468 and 548"), guarantying the obligations of the GTI to make payments pursuant to the terms of Lease Nos. 468 and 548. 23. Upon receiving the offer embodied in Lease Nos. 468 and 548, CitiCapital

Technology arranged to purchase the subject equipment from a supplier(s) specified by GTI (the "Supplier(s)"). The equipment was purchased solely for the purpose of leasing it to GTI. 24. The equipment that was the subject of Lease No. 468 was delivered to GTI. That

delivery was confirmed by GTI's execution of a Certificate of Delivery And Acceptance (the "Lease No. 468 Certificate"). 25. The equipment that was the subject of Lease No. 548 was delivered to GTI. That

delivery was confirmed by GTI's execution of a Certificate of Delivery And Acceptance (the "Lease No. 548 Certificate").
6 Document 58-3

Case 2:03-cv-01587-JAT

Filed 01/09/2006

Page 6 of 16

26.

Upon receipt of GTI's assurances of satisfactory delivery and/or, installation, and

acceptance of the equipment, and in reliance upon those assurances, CitiCapital Technology accepted Lease Nos. 468 and 548, and then paid the Supplier(s) for the equipment. 27. After GTI assured CitiCapital Technology that the equipment had been delivered

in good condition and/or satisfactorily installed, and after CitiCapital Technology purchased the equipment from the Supplier(s) specified by GTI and accepted Lease Nos. 468 and 548, both parties then became bound by the express written terms of Lease Nos. 468 and 548. 28. Under Lease Nos. 468 and 548, GTI agreed to lease from CitiCapital Technology

the following described personal property: LEASE NO. 005-0515468-000 005-0515548-000 LEASED EQUIPMENT DESCRIPTION Two (2) 2000 Peterbilt Trucks W/MTM 11 YD Bridgemaster V Mixer Invoice #020969 One (1) Vince Hagan Model VH-10945P Free Standing Jet Pulse Dust Conveyor with baby-buggy style dust shroud, ducting and dust recycle system fully described in Quote #000921H1.R1 dated 9-29-00 Invoice #020970 One (1) 5" Fill Pipe in lieu of a 4" Fill Pipe as quoted Two (2) additional 5" Fill Pipes Invoice #OR000821C1 One (1) Vince Hagan Model 3200BAL Elevated Silo with VH24SJP and 14" Screw Conveyor One (1) Silo Work Platform Option (sometimes hereafter collectively the "Lease No. 468 and 548 Equipment") 29. Lease Nos. 468 and 548 went into default for the failure to pay the monthly rent VEHICLE IDENTIFICATION #/ SERIAL NUMBER INPAL00X1YD493161 W/58419-15606 INPAL00X3YD493162 W/57170-16029

due in April, 2003 and remain in default.
Case 2:03-cv-01587-JAT 7 Document 58-3 Filed 01/09/2006 Page 7 of 16

30.

Pursuant to the terms of Lease Nos. 468 and 548 upon default, CitiCapital

Technology is entitled to immediate possession of the Lease No. 468 and 548 Equipment and is entitled to sell or otherwise dispose of it and apply the proceeds of any such disposition to the indebtedness of GTI to CitiCapital Technology. 31. Following the entry of bankruptcy Court Orders in the GTI bankruptcy case

authorizing CitiCapital Technology's recovery of the Lease No. 468 and 548 Equipment, CitiCapital Technology notified all parties of the sale of the Lease No. 468 and 548 Equipment. 32. As of the date of its recovery and sale, the fair market value of the Lease No. 468

and Lease No.548 Equipment did not exceed $148,000. 33. After extensive marketing of the Lease No. 468 Equipment, it was sold at public

auction. The date and gross amount received from the public auction sale is set forth below: LEASE NO. LEASED EQUIPMENT DESCRIPTION VEHICLE IDENTIFICATION #/ SERIAL NUMBER SALE PRICE AND DATE $58,500 2/10/04 $60,000 2/10/04

005One (1) 2000 Peterbilt Truck W/MTM INPAL00X1YD49316 0515468 11 YD Bridgemaster V Mixer 1 W/58419-15606 -000 005Two (2) 2000 Peterbilt Truck 0515468 W/MTM 11 YD Bridgemaster V -000 Mixer 34. INPAL00X3YD49316 2 W/57170-16029

The Lease No. 548 Equipment was sold by private sale. The date and gross

amount received from the private sale is set forth below: LEASE NO. LEASED EQUIPMENT DESCRIPTION SALE PRICE AND DATE

005Invoice #020969 0515548-000 One (1) Vince Hagan Model VH-10945P Free Standing Jet $29,500 Pulse Dust Conveyor with baby-buggy style dust shroud, 10/20/04 ducting and dust recycle system fully described in Quote CitiCapital #000921H1.R1 dated 9-29-00 Technology Finance, Inc.
Case 2:03-cv-01587-JAT 8 Document 58-3 Filed 01/09/2006 Page 8 of 16

Invoice #020970 One (1) 5" Fill Pipe in lieu of a 4" Fill Pipe as quoted Two (2) additional 5" Fill Pipes Invoice #OR000821C1 One (1) Vince Hagan Model 3200BAL Elevated Silo with VH24SJP and 14" Screw Conveyor One (1) Silo Work Platform Option 35. Under the express provisions of Lease Nos. 468 and 548, GTI agreed to pay

CitiCapital Technology its reasonable attorney's fees, as well as all other expenses incurred by CitiCapital Technology in connection with the enforcement of any of its remedies. Defendant Grant Goodman is therefore liable to CitiCapital Technology for such charges, pursuant to the terms of Lease Nos. 468 and 548 and the Grant Goodman Guaranty of Lease Nos. 468 and 548.

GRANT GOODMAN AND TERI GOODMAN'S GUARANTY OF GENERAL ELECTRIC LEASE NOS. 451,452,453, AND 7004

36.

CitiCapital Commercial is an equipment leasing company, providing financing to

end users of equipment. Under CitiCapital Commercial's typical financing arrangement, it is contacted by an end user (directly or through an intermediary) who makes application to CitiCapital Commercial to provide financing for the end user's acquisition of a particular item (or items) of equipment ­ that financing typically taking the form of a "lease". 37. If financing is approved, CitiCapital Commercial then purchases the equipment

which the end user has specifically designated, purchasing only from a supplier (or suppliers) also specifically designated by the end user. 38. The end user is informed that: (a) CitiCapital Commercial will not consummate its
9 Document 58-3

Case 2:03-cv-01587-JAT

Filed 01/09/2006

Page 9 of 16

purchase of the equipment unless and until that equipment is delivered and/or installed to the end user's satisfaction; and (b) CitiCapital Commercial will rely upon the end user's written verification of such satisfactory delivery and/or installation before consummating its purchase of the equipment. 39. The transactions giving rise to CitiCapital Commercial Lease no. 211-0106451

("Lease No. 451"), CitiCapital Commercial Lease no. 211-0106453-000 ("Lease No. 453"), CitiCapital Commercial Lease no. 211-0106452-000 ("Lease No. 452"), and CitiCapital Commercial Lease no. 211-0107004-000 ("Lease No. 7004") were in keeping with the usual customs and practices of CitiCapital Commercial. 40. Sometime prior to July 20, 2001, GTI formally offered to lease the equipment that

is the subject of Lease No. 451 from CitiCapital Commercial. Said offer was presented in the form of an equipment lease. 41. Sometime prior to August 13, 2001, GTI formally offered to lease the equipment

that is the subject of Lease No. 453 from CitiCapital Commercial. Said offer was presented in the form of an equipment lease. 42. Sometime prior to August 13, 2001, GTI formally offered to lease the equipment

that is the subject of Lease No. 452 from CitiCapital Commercial. Said offer was presented in the form of an equipment lease. 43. Sometime prior to October 24, 2001, GTI formally offered to lease the equipment

that is the subject of Lease No. 7004 from CitiCapital Commercial. Said offer was presented in the form of an equipment lease. 44. To induce CitiCapital Commercial to enter into Lease Nos. 451, 452, 453, and
10 Document 58-3 Filed 01/09/2006

Case 2:03-cv-01587-JAT

Page 10 of 16

7004, Defendants Grant Goodman and Teri Goodman each executed a guaranty (the "G and T Guarantys"), guarantying the obligations of the GTI to make payments pursuant to the terms of Lease Nos. 451, 452, 453, and 7004. 45. Upon receiving the offers embodied in Lease Nos. 451, 452, 453, and 7004,

CitiCapital Commercial arranged to purchase the subject equipment from a supplier specified by GTI (the "Supplier(s)"). The equipment was purchased solely for the purpose of leasing it to GTI. 46. The equipment that was the subject of Lease Nos. 451, 452, 453, and 7004 was

delivered to GTI. That delivery was confirmed by GTI's execution of Delivery And Acceptance Certificates (the "Lease Nos. 451, 452, 453, and 7004 Acceptance Receipts"). 47. Upon receipt of GTI's assurances of satisfactory delivery and/or, installation, and

acceptance of the equipment, and in reliance upon those assurances, CitiCapital Commercial accepted Lease Nos. 451, 452, 453, and 7004, and then paid the Supplier for the equipment. 48. After GTI assured CitiCapital Commercial that the equipment had been delivered

in good condition and/or satisfactorily installed, and after CitiCapital Technology purchased the equipment from the Supplier(s) specified by GTI and accepted Lease Nos. 451, 452, 453, and 7004, both parties then became bound by the express written terms of Lease Nos. 451, 452, 453, and 7004. 49. Under Lease Nos. 451, 452, 453, and 7004, GTI agreed to lease from CitiCapital

Commercial the following described personal property: LEASE NO. LEASED EQUIPMENT DESCRIPTION VEHICLE IDENTIFICATION #/ SERIAL NUMBER

Case 2:03-cv-01587-JAT

11 Document 58-3 Filed 01/09/2006

Page 11 of 16

211-0106451-000 11-0106452-000 211-0106453-000 211-0107004-000

Two (2) 2002 Vantage P-41-1000 Pneumatic Tank Trailers Two (2) 2002 Peterbilt 357 Conventional Tractors; w/ Gardner Denver Blowers Two (2) 2002 Vantage P-41-1000 Pneumatic Bulk Trailers

4EPPA41252BBA4130 4EPPA41272BBA4131 1XPAD09X32D574711 1XPAD09X52D574712 4EPPA41292BBA4132 4EPPA41202BBA4133

Two (2) 2002 Peterbilt 357 Tractors 1XPAD09X52D579196 w/ Gardner Denver Blowers 1XPAD09X72D579197 (sometimes hereafter collectively the "Lease No. 451, 452, 453, and 7004 Equipment") 50. Lease Nos. 451, 452, 453, and 7004 went into default for the failure to pay the

monthly rent due in April, 2003 and remain in default. 51. Pursuant to the terms of Lease Nos. 451, 452, 453, and 7004 upon default,

CitiCapital Commercial is entitled to immediate possession of the Lease No. 451, 452, 453, and 7004 Equipment and is entitled to sell or otherwise dispose of it and apply the proceeds of any such disposition to the indebtedness of GTI to CitiCapital Commercial. 52. Following the entry of a bankruptcy Court Order in the GTI bankruptcy case

authorizing CitiCapital Commercial's recovery of the Lease No. 451, 452, 453, and 7004 Equipment, CitiCapital Commercial notified all parties of the sale of the Lease No. 451, 452, 453, and 7004 Equipment. 53. As of the date of its recovery and sale, the fair market value of the Lease No. 451,

452, 453, and 7004 Equipment did not exceed $307,250.00. 54. After extensive marketing of the Lease No. 451, 452, 453, and 7004 Equipment,

the Lease No. 451, 452, 453, and 7004 Equipment it was sold at public auction. The date and gross amount received from the public auction sale(s) is set forth below:

Case 2:03-cv-01587-JAT

12 Document 58-3 Filed 01/09/2006

Page 12 of 16

LEASE NO.

LEASED EQUIPMENT DESCRIPTION

VEHICLE IDENTIFICATION #/ SERIAL NUMBER

SALE PRICE AND DATE

211One (1) 2002 Vantage P-41-1000 0106451-000 Pneumatic Tank Trailer 211One (1) 2002 Vantage P-41-1000 0106451-000 Pneumatic Tank Trailer 211One (1) 2002 Vantage P-41-1000 0106453-000 Pneumatic Bulk Trailer 211One (1) 2002 Vantage P-41-1000 0106453-000 Pneumatic Bulk Trailer

4EPPA41252BBA4130 $22,000 11/21/03 4EPPA41272BBA4131 $23,500 11/20/03 4EPPA41292BBA4132 $24,750 11/21/03 4EPPA41202BBA4133 $25,500 11/20/03

211One (1) 2002 Peterbilt 357 1XPAD09X32D574711 $58,500 0106452-000 Conventional Tractor; w/ Gardner 11/21/03 Denver Blower 211One (1) 2002 Peterbilt 357 1XPAD09X52D574712 $51,000 0106452-000 Conventional Tractor; w/ Gardner 11/24/03 Denver Blower 211One (1) 2002 Peterbilt 357 0107004-000 Tractor w/ Gardner Denver Blower 211One (1) 2002 Peterbilt 357 0107004-000 Tractor w/ Gardner Denver Blower 55. 1XPAD09X52D579196 $51,000 11/21/03 1XPAD09X72D579197 $51,000 11/21/03

Pursuant to that certain purchase and sale agreement, dated as of November 22, 2004, and

related ancillary documentation (the "Transaction"), General Electric Capital Corporation ("GE") purchased certain assets (the "Assets") from CitiCapital Commercial. In particular, as part of the Transaction, the Assets represented by Lease Nos. 451, 452, 453 and 7004 (the "GE Leases") and the G and T Guarantees have been transferred to GE. 56. Under the express provisions of the GE Leases, GTI agreed to pay all reasonable

attorney's fees as well as all other expenses incurred in connection with the enforcement of any
Case 2:03-cv-01587-JAT 13 Document 58-3 Filed 01/09/2006 Page 13 of 16

of the remedies under the GE Leases. Defendants Grant Goodman and Teri Goodman are therefore liable to GE for such charges pursuant to the terms of the GE Leases and the G and T Guarantees. 57. The basis for this Court's jurisdiction is diversity of citizenship pursuant to 28

U.S.C. §1332. II. CONCLUSIONS OF LAW On the basis of the foregoing Findings of Fact, the Court makes the following Conclusions of Law: 1. The Court concludes that: (a) Defendant Grant Goodman personally guaranteed

Citicapital Technology Lease Nos. 121, 122, 468 and 548; and (b) Defendants Grant Goodman and Teri Goodman personally guaranteed General Electric Lease Nos. 451, 452, 453, and 7004. 2. The Court further concludes that: (a) the guaranty of Grant Goodman is in default

because all payments due under Citicapital Technology Lease Nos. 121, 122, 468 and 548 were not made; and (b) the guaranty of Grant Goodman and Teri Goodman is in default because all payments due under General Electric Lease Nos. 451, 452, 453, and 7004 were not made. 3. 4. The Court further concludes that Plaintiffs have proven their damages. The Court further concludes that: (a) Citicapital Technology Lease Nos. 121, 122,

468 and 548 are valid and enforceable contracts that must be given full force and effect; (b) General Electric Lease Nos. 451, 452, 453, and 7004 are valid and enforceable contracts that must be given full force and effect; (c) the Grant Goodman guarantees of Citicapital Technology Lease Nos. 121, 122, 468 and 548 are valid and enforceable contracts that must be given full force and effect; and (d) the Grant Goodman and Teri Goodman guarantees of General Electric
14 Document 58-3 Filed 01/09/2006

Case 2:03-cv-01587-JAT

Page 14 of 16

Lease Nos. 451, 452, 453, and 7004 are valid and enforceable contracts that must be given full force and effect. 5. Any finding of fact made herein shall also be deemed a conclusion of law, and any

conclusion of law made herein shall also be deemed a finding of fact. 6. The Court further concludes that Citicapital Technology is entitled to judgment in

its favor and against Defendant Grant Goodman as follows: (a) as to Lease no. 121 the amount of $51,213.88 plus interest at the rate of fifteen percent (15%) per annum from April 23, 2005 until paid in full; (b) as to Lease no. 122 the amount of $5,178.14 plus interest at the rate of fifteen percent (15%) per annum from April 23, 2005 until paid in full; (c) as to Lease no. 468 the amount of $59,716.73 plus interest at the rate of ten percent (10 %) per annum from April 23, 2005 until paid in full; and (d) as to Lease no. 548 the amount of $25,801.26 plus interest at the rate of ten percent (10 %) per annum from April 23, 2005 until paid in full. 7. The Court further concludes that General Electric is entitled to judgment in its

favor and against Defendant Grant Goodman and Teri Goodman as follows: (a) as to Lease no. 451 the amount of $40,723.94 plus interest at the rate of ten percent (10 %) per annum from April 23, 2005 until paid in full; (b) as to Lease no. 452 the amount of $60,834.57 plus interest at the rate of ten percent (10 %) per annum from April 23, 2005 until paid in full; (c) as to Lease no. 453 the amount of $40,268.45 plus interest at the rate of ten percent (10 %) per annum from April 23, 2005 until paid in full; and (d) as to Lease no. 7004 the amount of $73,093.31plus interest at the rate of ten percent (10 %) per annum from April 23, 2005 until paid in full. 8. The Court further concludes that as the prevailing party in this matter, Plaintiffs

are entitled to an award of their reasonable attorney's fees and costs incurred in this action,
15 Document 58-3 Filed 01/09/2006

Case 2:03-cv-01587-JAT

Page 15 of 16

pursuant to A.R.S. §12-341.01. 9. Accordingly, Plaintiffs shall submit an application for attorney's fees and costs

and a form of Final Judgment within _______ days hereof. DONE IN OPEN COURT this ____ day of ________________, 2006. _________________________________ Honorable James A. Teilborg

Case 2:03-cv-01587-JAT

16 Document 58-3 Filed 01/09/2006

Page 16 of 16