Orr v. Goodwin

953 A.2d 1190 (2008)


D agreed to purchase real and personal property from P for $1,020,000. D paid a deposit of $10,000. The sales agreement contained a clause titled “Liquidated Damages,” which stated: “If the Buyer shall default in the performance of their obligation under this agreement, the amount of the deposit may, at the option of the Seller, become the property of the Seller as reasonable.” In February 2005, D had paid an additional $15,000 as a deposit. The sale was to close by October 15, 2005. In October D told P they could not do the deal as their home did not sell. P retained the $25,000. There was no contact between the parties until 2007.  P sued D in February 2007 to recover various damages, including carrying costs on the property and costs incurred in purchasing and carrying other property, as a result of Ds' failure to consummate their agreement. D moved for summary judgment, and it was granted. P appealed.