Roy A. Carroll d/b/a Animal Care Clinic collectively “Carroll” appeals from the grant of summary judgment entered in favor of Finova Capital Corporation. Because we conclude that the trial court entered a sua sponte summary judgment without providing Carroll with a full opportunity to address the basis on which the court entered its order, we reverse. Finova filed this action against Carroll alleging that it had provided financing to Carroll in connection with the leasing of office equipment marketed by Recomm Operations, Inc. and others. Finova further alleged that after Recomm sought bankruptcy protection, the United States Bankruptcy Court entered a confirmation of a joint plan of reorganization, which modified the terms of the original lease and released Finova from all claims and defenses that otherwise might have been raised by Carroll on matters occurring before June 30, 1998 and enjoined Carroll from raising any claims or defenses against Finova in connection with the lease on any matters occurring before that date. Finova contended that Carroll defaulted on his obligations under the modified lease.
Carroll answered, denying virtually all allegations and raising a statute of limitation defense, among other defenses. In response, Finova filed a “brief in support in response to defendants’ assertion of statute of limitations defense” arguing that the limitation period had not expired and that the confirmation order precluded Carroll from raising the defense. The trial court conducted a hearing for the primary purpose of deciding whether the action was barred by the statute of limitation. No testimony was presented at the hearing. Instead, the parties outlined the facts and argued extensively concerning the statute of limitation defense.
