Mahoney v. Tingley
Supreme Court of Washington
529 P.2d 1068 (1975)
Relevant factsFree
The plaintiff seller agreed to sell residential property to the defendant buyers for $20,250 under an earnest money agreement providing that if the buyers failed to complete the purchase, the seller could either sue for specific performance or retain the $200 earnest money deposit as liquidated damages; when the buyers refused to close and the seller later resold the property for $19,000 (a $1,250 shortfall), the seller sued for damages of $3,141.44 - well beyond the earnest money amount.
IssueFree
Whether a seller can avoid the enforcement of a liquidated damages clause absent evidence that the liquidated damages are a penalty or are otherwise unlawful.