Jones v. Lee

The Lees (defendants) contracted to buy property from the Joneses (plaintiffs) for $610,000 and paid a $6,000 earnest-money deposit, but backed out shortly after for financial reasons, offering to forfeit the deposit in exchange for cancellation. The Joneses rejected that proposal, but once it was clear the Lees wouldn't complete the deal, relisted the property and eventually sold it for $540,000. The Joneses sued for breach of contract, and the trial court awarded them $70,000 (the difference between the original contract price and the eventual resale price), plus special and punitive damages; the Lees appealed.