Vines v. Orchard Hills, Inc.
Supreme Court of Connecticut
435 A.2d 1022 (Conn. 1980)
The Vineses (plaintiffs) contracted to buy a condo from Orchard Hills (defendant), paying a $7,880 down payment under a contract with a liquidated-damages clause allowing the seller to keep that down payment upon buyer default. After Mr. Vines took a job elsewhere, the couple decided not to close and treated the sale as never consummated, then sued to recover their down payment despite the liquidated-damages clause. The trial court ruled for the Vineses, reasoning that since the condo had appreciated roughly $80,000 between contract signing and trial, Orchard Hills suffered no loss from the breach; Orchard Hills appealed.
Whether purchasers of property, after their own good-faith breach, may recover a down payment.