Quimbee logo
DMCA.com Protection Status
From our private database of 17,300+ case briefs...

Karimi v. 401 North Wabash Venture

Appellate Court of Illinois
952 N.E.2d 1278 (2011)


Facts

Farid Karimi and Mahmobah Kashani (the buyers) (plaintiffs) entered into a contract with 401 North Wabash Venture (401 North Wabash) (defendant) to purchase a condominium and three parking spaces in Trump International Hotel and Tower for $2.2 million. The buyers paid earnest money, or a deposit, of 15 percent of the purchase price, about $330,000. Under the contract, 401 North Wabash was entitled to liquidated damages if the buyers defaulted on the purchase agreement. The liquidated damages would equal the buyers’ deposit plus any other amounts they had paid toward the purchase price. Additionally, the liquidated damages were limited to this sum regardless of actual damages. The initial closing date for the purchase was set for October 6, 2008. When the buyers could not obtain financing, the parties pushed the closing date to May 15, 2009. The buyers failed to close on May 15, 2009. Consequently, 401 North Wabash terminated the purchase agreement and retained the $330,000 as liquidated damages. In September 2009, 401 North Wabash sold the condominium plus two parking spaces for $2.5 million. The buyers sued 401 North Wabash, arguing that the contract’s liquidated damages clause was unenforceable because it was for an uncertain sum and because it operated as a penalty. Specifically, the buyers argued that the clause was a penalty because the clause gave the seller an option to seek actual damages and because 401 North Wabash suffered no actual damages. 401 North Wabash moved to dismiss. The trial court dismissed the buyers’ complaint. The buyers appealed.

Rule of Law

Issue

Holding and Reasoning (Harris, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 457,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 457,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 17,300 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers


Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial