Uzan v. 845 UN Limited Partnership

Cem and Hakan Uzan (plaintiffs), Turkish billionaires represented by counsel, contracted to buy seven not-yet-built Trump World Tower apartments from 845 UN Limited Partnership (defendant), making 25 percent deposits with an express agreement that 845 UN could keep the entire deposit upon an uncured default. After the Uzans failed to close and then claimed a right to rescind based on September 11-related terrorism fears about the building's prominence, 845 UN gave them 30 days to cure, which they failed to do, leading 845 UN to terminate the contracts and retain the deposits. The Uzans sued to recover the deposits as an unenforceable penalty; industry experts submitted affidavits that 25 percent was a standard real-estate deposit amount, and the trial court allowed 845 UN to keep 10 percent as forfeited but subjected the remainder to ordinary liquidated-damages scrutiny, prompting 845 UN's appeal.