VINES V. ORCHARD HILLS, INC. 181 Conn. 501, 435 A.2d 1022 (1980) CASE BRIEF

VINES V. ORCHARD HILLS, INC.

181 Conn. 501, 435 A.2d 1022 (1980)

NATURE OF THE CASE: This was a dispute over the down payment from a cancelled real estate contract for sale. Vines (P) contracted to buy a condo and made a down payment that was considered to be liquidated damages by the contract. P decided not to take the condo and filed suit to recover the down payment. The court sustained a judgment in favor of P and Orchard (D) appealed.

FACTS: Vines (P) placed a down payment of $7,880 on a condominium from Orchard Hills (D) selling for $78,800. The signed contract stipulated that the down payment would be the liquidated damages in case of default. P decided not to go through with the sale in that he was just transferred to New Jersey and informed D of those circumstances. D refused to refund the down payment. D demurred to the complaint and asked for summary judgment on the damages clause but was denied. At trial, P established that the value of the condominium had a fair market value of $160,000. The trial concluded that, because D had gained a windfall of approximately $80,000, P was entitled to recover their down payment. No evidence showed the market value of the condominium at the time of P's breach of their contract or the damages sustained by D as a result of that breach. Judgment was rendered for P for the down payment and D appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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