Leeber v. Deltona Corp.

546 A.2d 452 (1988)

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Nature of the Case

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Facts

Leeber (P) were a group of Portland residents who decided to invest as a group in a condo unit being developed by Deltona (D). P signed a purchase contract with D for $150,200 with a down payment of $22,530 with the balance due at closing to be specific by D to be within four years. Under the terms of the agreement, the $22,530 was to be retained by D as liquidated damages in the event of a breach by P. By May 1982, D notified P that they would be required to close on the condo or the damages deposit would be retained. P failed to close, and D notified P that the deposit would be retained by D. D then sold the unit to another party for $167,500 and that party paid a deposit of $25,125. P sued D for return of the deposit. The trial court determined that enforcement of the liquidated damages clause was unconscionable. The court ruled that D proved $5,704 in actual damages and gave P the $15,020 remaining. Both parties appealed.