Russell v. Richards

John and Beth Richards (defendants) sold property under a land installment contract, later assigned to Mary Russell (plaintiff), which provided that Russell would forfeit her interest in the property if she defaulted. The property was worth $48,989 at the time of sale; over the following six years Russell paid $10,782 while possessing the property and renting out part of it for more each month than she owed the Richardses, and by the time she defaulted the property's market value had risen to $82,735. Russell forfeited her interest under the contract's terms and then sued for damages equal to the payments she had made; the trial court found for Russell and awarded damages, and the Richardses appealed, arguing the forfeiture provision should simply have been enforced.