Wolofsky v. Behrman

The Behrmans (defendants) agreed to resell a condominium back to developer Wolofsky (plaintiff) after failing to sell their own home, but shortly before closing discovered Wolofsky had already let a new buyer move in ahead of the closing; the Behrmans refused to close, returned Wolofsky's deposit, and Wolofsky sued for damages. The Behrmans conceded breaching the contract but argued they hadn't acted in bad faith, and the trial court agreed, limiting Wolofsky's recovery.

Whether, if a real estate seller has title to the property but refuses to complete the sale to the buyer, the seller has acted in bad faith sufficient to allow the buyer to recover damages.