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Lind Building Corp. v. Pacific Bellevue Developments
Washington Court of Appeals
776 P.2d 977 (1989)
Pacific Bellevue Developments (PBD) (defendant) agreed to sell real estate to Lind Building Corporation (Lind) (plaintiff) for more than $4 million. Lind paid an initial $20,000 deposit into an escrow account. The agreement provided that Lind would make additional escrow deposits totaling $70,000 prior to closing, which Lind made. Lind and PBD later agreed to extend the time for closing and for Lind to make additional deposits. Under the terms of the original contract, if the agreement was terminated, PBD would have the right to keep “the deposit” as liquidated damages. The transaction failed to close, and PBD kept the full $250,000 that Lind had deposited. PBD later sold the real estate to a third party for $5 million. Lind sued PBD for the return of the $250,000. The trial court held that PBD was entitled to keep the $250,000 as liquidated damages. Lind appealed.
Rule of Law
Holding and Reasoning (Scholfield, J.)
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