Horton v. O'Rourke
Florida District Court of Appeal
321 So.2d 612 (1975)
The O'Rourkes and other buyers (plaintiffs) took possession of homes built by Horton (defendant) under leases pending clearance of a federal tax lien encumbering the properties, relying on Horton's assurances that the lien would be removed to make improvements and continue renting for 22 months; when Horton, despite genuine efforts, couldn't clear title, he offered to keep renting or refund the buyers' earnest money. The trial court denied specific performance but awarded the buyers benefit-of-the-bargain damages - the difference between the properties' market value and the unpaid contract price - and Horton appealed.
Whether a buyer is entitled to benefit-of-the-bargain damages, measured by the difference between contract price and market value, when a real property seller breaches the sale contract without acting in bad faith.