Lind Building Corp. v. Pacific Bellevue Developments

776 P.2d 977 (1989)

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

Pacific (D) owned property that Lind (P) wanted to buy. P paid $20,000 as an initial deposit on the sale price of $4,144,085. The agreement provided that if P defaulted, D had the right to get the deposit from escrow and retain it as liquidated damages. The agreement also provided that P would make additional deposits at certain times prior to the close of escrow. The deposits were made, and P sought extensions of time for closing and made additional deposits. The total sum of deposits and extension payments was in the amount of $250,000. The transaction did not close on May 6^th, 1984 and D refused a request for further extensions and informed P that it had forfeited the $250,000 as per the agreement. On June 5, 1984, P entered into a contract to sell the property to another for $5,150,000, all cash upon closing. The transaction was closed in September of 1984. P then sued D for a return of the $250,000. The trial court ruled that the cause was an enforceable clause and did not constitute a penalty. D was also awarded reasonable attorney fees of $31,031.05. P appealed.