Farese v. McGarry

James McGarry (defendant) leased a house from Frank Farese (plaintiff), and, believing the lease actually gave him an option to purchase the property, made improvements to the home during the rental term. In fact, the lease gave McGarry only a right of first refusal, not a true option, though the clause's language could easily have confused someone inexperienced with leases. McGarry stayed in the house nearly seven months past the lease term despite a notice to vacate. Farese sued for damage to the house and double rent for the holdover period; McGarry counterclaimed for specific performance of the option or, alternatively, compensation for his improvements. A jury awarded McGarry $13,000, finding Farese would otherwise be unjustly enriched.