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Keywords

contractdamagesequityhearingliquidated damages

contractbreach of contractdamagesappellantappellee

Related Cases

Maxey v. Glindmeyer, 379 So.2d 297

Facts

The Maxeys entered into a contract to purchase Oak Crest Manor from Mrs. Glindmeyer, which included a description of the property and a deposit of $75,000. After a survey revealed the property was only 8.3 acres instead of the 13 acres specified, the Maxeys sought to rescind the contract and recover their deposit. Glindmeyer countered that the Maxeys had breached the contract, leading to a legal dispute over the deposit and damages incurred.

Appellant Louis T. Maxey is a physician living and practicing medicine in Milwaukee, Wisconsin. Wishing to move to Mississippi to live and practice medicine, the Maxeys contacted Joseph Buccola, a land sales director, who brought them into touch with Mrs. Glindmeyer and her husband, who owned a residence, 'Oak Crest Manor', (apparently aptly described as a mansion) with an area of land on which it sat and surrounding it.

Issue

Did the Maxeys breach the land sale contract, and if so, what are the appropriate damages and consequences regarding the deposit?

The court erred in finding that appellants breached the contract with appellee, and in finding that the $75,000 earnest money is awarded to appellee for breach of contract.

Rule

The court determined that the general description of the property in the contract was controlling, and that equity principles should guide the determination of damages, particularly regarding the forfeiture of the deposit.

The general description 'Oak Crest Manor' would have sufficed to convey the realty encompassed within the boundaries of Oak Crest Manor.

Analysis

The court found that the Maxeys breached the contract by refusing to complete the purchase based on the survey results. However, it also recognized that awarding the full deposit as liquidated damages would be inequitable, as it did not account for the actual damages suffered by Glindmeyer. The court emphasized that equity does not favor forfeitures and that damages should be limited to what is reasonable and necessary to cover actual losses.

The chancellor was correct in his finding and adjudication that the Maxeys had breached the contract and in ordering cancellation of the lis pendens notice.

Conclusion

The court affirmed the finding that the Maxeys breached the contract but reversed the forfeiture of the $75,000 deposit, remanding the case for a new hearing to determine the actual damages incurred by Glindmeyer.

We believe this state of facts is such that there should be no part thereof allotted to her beyond a sum reasonably necessary to cover her actual damages.

Who won?

Mrs. Glindmeyer prevailed in establishing that the Maxeys breached the contract, but the court limited her recovery to actual damages rather than the full deposit.

The chancellor rendered a decree wherein there were incorporated extensive findings of fact.

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