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Neri v. Retail Marine Corp.

Court of Appeals of New York
285 N.E.2d 311 (1972)

Facts

Neri (plaintiff) contracted to purchase a boat from Retail Marine Corp. (Retail) (defendant) for the price of $12,587.40. Neri paid a deposit of $4,250 in consideration for Retail’s agreement to deliver the boat immediately. Approximately six days after executing the agreement, Neri’s lawyer informed Retail that Neri was facing health problems and would be rescinding the contract. The boat had already been ordered, however, and was delivered to Retail at roughly the same time Neri’s letter was received. Retail refused to refund Neri’s deposit, and Neri filed an action to recover the $4,250 already paid. Retail counterclaimed seeking damages for its lost profits, incidental damages, and attorney’s fees. At trial, it was determined that Retail sold the boat four months later for the same price for which it had contracted with Neri. The trial court denied damages amounting to lost profits for Retail, but awarded retail $500 based on its counterclaim. The trial court directed $3,750 to be returned to Neri from his deposit. Retail appealed.

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Holding and Reasoning (Traynor, C.J.)

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