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Nohe v. Roblyn Development Corp.

New Jersey Superior Court, Appellate Division

686 A.2d 382 (N.J. App. 1997)

Relevant factsFree

The Nohes (plaintiffs) contracted to buy a house from Roblyn Development (defendant) and paid a $79,027.40 deposit, but backed out of the deal; Roblyn resold the house to a third party for roughly $190,000 more than the Nohes' contract price. The Nohes sued to recover their deposit, conceding their breach for purposes of summary judgment, and the trial court ordered the deposit returned; Roblyn appealed, seeking to keep the deposit as liquidated damages.

IssueFree

Whether a liquidated damages clause fixing a substantial sum as damages is enforceable when it is clear the non-breaching party sustained no actual loss from the breach.

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