Kaufman Brothers v. Home Value Stores, Inc.

Home Value Stores, Incorporated (Home Value) (defendant) agreed to enter a contract for deed of a commercial building owned by Kaufman Brothers (plaintiff), a partnership. The contract for deed contained a clause regarding the rights of Kaufman Brothers in the event of a default by Home Value. Specifically, the clause provided that Kaufman Brothers could either enforce collection of the total amount due under the contract by any available remedy “or” terminate the agreement and retain all payments made by Home Value as liquidated damages. After about two years of making payments under the contract to Kaufman Brothers, Home Value stopped making payments, and Kaufman Brothers sent Home Value a notice of default. When Home Value did not cure the default, Kaufman Brothers gave Home Value a notice of acceleration, which required Home Value to pay the remaining balance owed under the contract. Home Value did not pay the remaining balance owed, so Kaufman Brothers retook possession of the building and sold the property. Subsequently, Kaufman Brothers sued Home Value for breach of contract. In the complaint, Kaufman Brothers stated that the contract was considered terminated. The district court granted summary judgment in favor of Home Value, finding that the election-of-remedies doctrine precluded a suit for breach of contract. The Kaufman Brothers appealed, arguing that the contract for deed provided the Kaufman Brothers with the right to pursue multiple remedies.