Karimi v.

401 NORTH WABASH VENTURE 952 N.E.2d 1278 (2011)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Ps entered into an agreement with D to purchase condominium 46A and parking spaces 253, 254 and 255 at the Trump International Hotel and Tower. The total purchase price was $2,188,464. Ps deposited $328,269.60 (15% of the purchase price) as earnest money. The agreement provided an anticipated closing date of late 2008. Ds notified Ps that the unit would be substantially completed and ready to close on October 6, 2008. Closing was extended to May 15, 2009, due to Ps' inability to obtain financing. Ps failed to close on May 15, 2009, and D declared Ps in default. As per the liquidated damages clause D retained the earnest money and earned interest as liquidated damages. In November 2009, D sold the unit and one less parking space to a third party for $2.5 million. Ps sued D alleging that the purchase agreement was still in effect and sought a declaration of the parties' rights under the agreement. In part, Ps claimed the liquidated damages clause was unenforceable as a penalty. D moved to dismiss and the court granted the motion. Ps appealed.