Appeal by plaintiff from a small claims judgment of the Justice Court, Town of Woodbury, Orange County (E. Kellman, J.), entered April 21, 2003, in favor of defendant dismissing the action.

Judgment unanimously reversed without costs and matter remanded for a new trial.

Substantial justice was not done between the parties in this small claims action for breach of contract (UJCA 1804, 1807). Pursuant to the lease for water softening
equipment, defendant could apply one year's rental payments plus the cost, if any, of installation toward the stated purchase price of $745, or could continue to rent the equipment on a three-month basis for $51 indefinitely.

A new trial is warranted in the interest of justice in light of the uncontroverted evidence that defendant stopped making rental payments pursuant to the lease. At said new trial, there should be a further development of the facts surrounding defendant's alleged attempt to exercise his purchase option, whether plaintiff improperly refused to allow the outright purchase of the equipment and whether defendant waived said improper refusal by continuing to make rental payments.
Decision Date: July 01, 2004