Dover Pool & Racquet Club, Inc. v. Brooking

Dover Pool & Racquet Club (plaintiff) contracted to buy land from the Brookings (defendants) to build a nonprofit tennis and swim club, and paid a deposit. Before closing, Dover Pool learned Medford was considering a zoning amendment that would require a special permit for the intended use, applied retroactively to cover this very contract - and told the Brookings it would not close. Medford adopted the amendment shortly after the scheduled closing date, and the state approved it months later. The trial court found a mutual mistake of fact and ordered the contract rescinded and the deposit returned; the Brookings appealed.