Lucenti v. Cayuga Apartments, Inc.
Court of Appeals of New York
399 N.E.2d 918 (1979)
The plaintiff agreed to buy two adjacent parcels, each containing a freestanding building, from the defendant, and one building was substantially destroyed by fire between contract signing and closing; the defendant collected $45,000 in property insurance and returned the plaintiff's deposit, but the plaintiff refused the deposit and sued for specific performance with a price abatement. The trial court initially allowed cancellation or performance without price reduction, the appellate division reversed and remanded for an abatement determination, the trial court set an abatement amount, the plaintiff appealed seeking a greater reduction, the appellate division increased it, and both parties cross-appealed.
Whether, if a building is substantially damaged during the period between contract signing and closing and the contract does not have a risk-of-loss clause, the buyer is entitled to specific performance with a reduced purchase price.