Kelley v. Leucadia
Supreme Court of Utah
846 P.2d 1238 (1992)
Kelley (plaintiff) paid a $10,000 earnest-money deposit to buy land from First Security Bank (FSB) under a sales agreement; after a boundary dispute arose, Kelley repeatedly agreed to delay closing and eventually tendered payment anyway, but FSB refused to complete the sale and instead offered to simply release his deposit, which Kelley refused. Kelley sued for specific performance, damages, and a price abatement; after settling the damages and abatement claims, the trial court ordered specific performance, and Leucadia (defendant), substituted in for FSB, appealed. The court of appeals reversed, reasoning the earnest-money agreement's own remedies precluded specific performance, and Kelley appealed further.
Whether a purchaser who made an earnest-money deposit can obtain specific performance of a real estate contract against a defaulting seller.