Schrenko v. Regnante

The Schrenkos (plaintiffs) contracted to buy the Mazareases' (defendants) house for $360,000 and paid a $16,000 deposit, with the contract giving the Mazareases the option, upon the Schrenkos' breach, to keep the deposit as liquidated damages if they chose. The Schrenkos ultimately did not complete the purchase, and the Mazareases resold the house a week later for $385,000, netting an extra $25,000. Despite that profit, the Mazareases' attorneys sent a letter stating the Mazareases would both keep the deposit and potentially seek further damages from the breach, claiming nearly $19,000 in damages while ignoring the resale profit. The Schrenkos sued to recover the deposit; the trial court, without considering anything that happened after the breach, ruled for the Mazareases and their attorneys, and the Schrenkos appealed.