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Keywords

plaintiffdefendantdamagesequitytrialdivorcespecific performance
plaintiffdefendantdamagesequitytrialwill

Related Cases

Godwin v. Lindbert, 101 Mich.App. 754, 300 N.W.2d 514

Facts

The plaintiffs, Paul and Carol Godwin, sought to purchase a home from defendants Thomas and Mary Lindbert, executing an offer for a cash sale with a conventional mortgage. The closing was scheduled for April 12, 1977, but did not occur because Mrs. Lindbert, under a restraining order related to a divorce, refused to sell. The plaintiffs were ready to close and had a mortgage commitment at an interest rate of 8.75%, which lapsed due to the sellers' failure to perform. The plaintiffs subsequently filed for specific performance and damages.

Seeking to purchase the home of the defendants, Thomas and Mary Lindbert, plaintiffs, Paul and Carol Godwin, executed and submitted an offer to purchase which contemplated a cash sale with a conventional mortgage in the amount of $59,000.

Issue

Did the trial judge abuse his discretion in granting plaintiffs supplemental damages equaling the difference between the original mortgage interest rate and the mortgage interest rate prevailing at the date of judgment?

Did the trial judge abuse his discretion in granting plaintiffs supplemental damages equalling the difference between the original mortgage interest rate and the mortgage interest rate prevailing at the date of judgment?

Rule

Michigan courts have long recognized that a trial court in equity has the power to protect all of the equities of the parties and may grant complete relief, including an award of damages, in the form of specific performance.

Michigan courts have long recognized that a trial court in equity has the power to protect all of the equities of the parties.

Analysis

The court found that the trial court had the authority to grant additional relief necessary to address the equities of the parties. It determined that awarding the plaintiffs the difference in mortgage interest rates was appropriate, as it compensated them for the delay caused by the defendants' failure to close the sale. The court noted that this approach was consistent with previous rulings that allowed for compensation of increased mortgage costs due to delays in property conveyance.

In the instant case, the trial court clearly had within its discretion the authority to grant such additional or incidental relief as it thought necessary.

Conclusion

The court affirmed the trial court's judgment, concluding that there was no abuse of discretion in awarding supplemental damages based on the difference in mortgage interest rates.

We answer the question in the negative, and affirm.

Who won?

The plaintiffs, Paul and Carol Godwin, prevailed in the case because the court upheld the trial court's decision to grant specific performance and supplemental damages due to the sellers' failure to close the sale.

The court found that Mr. Lindbert was at all times willing to convey the property; that Mr. Lindbert had no part in preventing the agreed upon sale.

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