Contracts Keyed to Fuller
Merritt Hill Vineyards, Inc. v. Windy Heights Vineyard, Inc.
Facts
Merritt Hill Vineyards, Inc. (Plaintiff) entered into a written agreement with Windy Heights Vineyards (Defendant) to purchase a majority stock interest in Defendant’s Vineyard. The agreement provided that Defendant would retain Plaintiff’s $15,000 deposit tendered as liquidated damages if the sale did not close, provided that Defendant had obtained a title insurance policy and submitted mortgage confirmation to Plaintiff by the date of closing. At the closing it was revealed that Defendant had not obtained the title insurance policy or provided mortgage confirmation. Plaintiff refused to close and demanded the return of its deposit. When Defendant refused, Plaintiff brought suit for the return of the deposit plus $26,000 in consequential damages. After Special Term denied summary judgment, the appellate division reversed as to the cause of action for return of the deposit of Plaintiff, but dismissed on the issue of consequential damages. Both parties appealed.
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