LIND BUILDING CORP. V. PACIFIC BELLEVUE DEVELOPMENTS
776 P.2d 977 (1989)
NATURE OF THE CASE: This was a dispute over a liquidated damages provision in a real
estate contract.
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 6th 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.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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