Donovan v. Bachstadt

The Donovans (plaintiffs) agreed to buy property from Bachstadt (defendant) for $58,900, with Bachstadt financing part of the price at no more than 10.5% interest, but the deal fell through when Bachstadt could not deliver good title. The Donovans bought a different home at a higher 13.25% mortgage rate and sued for the resulting increased financing cost as compensatory damages; the trial court found a breach but denied recovery of the rate differential, and the appellate division reversed, allowing that theory of damages if the Donovans had entered or would soon enter a comparable transaction.