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Leeber v. Deltona Corp.

Maine Supreme Judicial Court

546 A.2d 452 (1988)

Relevant factsFree

Leeber (plaintiff) agreed to buy a Florida condominium from Deltona Corp. (Deltona) (defendant) for $150,200, paying a 15 percent ($22,530) deposit under a contract with a liquidated damages clause allowing Deltona to retain that deposit if Leeber breached; after Leeber repeatedly failed to close despite multiple closing-date notices and extensions from Deltona, Deltona set a final closing date, Leeber again failed to close, and Deltona retained the deposit and resold the unit eleven days later for $167,500. Leeber sued in Maine to recover the deposit, and the trial court found enforcing the full liquidated damages clause unconscionable, allowing Deltona to keep only $5,704 in actual costs and awarding Leeber the remaining $15,020; Deltona appealed.

IssueFree

Whether, under Florida law, a liquidated damages clause is enforceable if damages are not ascertainable at the time of contract, unless subsequent circumstances demonstrate it would be unconscionable to enforce the liquidated damages provision.

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