J. D'Addario & Company sought to purchase a multi-million dollar commercial property from Embassy Industries. At the time the $650,000 downpayment was made, the parties' contract provided that the monies would be placed in an interesting-bearing account and, if the closing didn't occur, Embassy's "sole remedy" would be to look to those proceeds.
When the deal faltered, and D'Addario sued to recover its downpayment, Embassy countered that it was also entitled to statutory interest at the rate of 9% per year.
After the Suffolk County Supreme Court sided with Embassy, and entered a judgment for $877,406, both the Appellate Division, Second Department, and our state's highest court, were of the view the parties' agreement clearly limited the recovery to the downpayment (plus any account-related interest). It thought the parties' use of the words "sole remedy," "sole obligation," and "no further rights," unequivocally established that the parties had excluded "statutory interest."
That sure was interesting.
To view a copy of the New York Court of Appeals' decision, please use this link: J. D'Addario & Company, Inc. v. Embassy Industries, Inc.