In Alter v. Levine , Daniel Alter tried to sell his co-op to Richard Levine, but when the latter
was rejected by the building's board, Alter sued to retain the $62,000 down payment.
The contract of sale provided Alter could keep the money if Levine acted in "bad faith."
Although Alter claimed Levine submitted false data which, in turn, triggered the rejection, the Westchester County Supreme Court sided with the rejected buyer and directed the seller to return the money.
On appeal, the Appellate Division, Second Department, affirmed the outcome. Apparently, since he lacked any proof and his allegations were conclusory in nature, Alter was unable to establish the board's rejection was due to any misconduct by Levine.
(The AD2 also affirmed dismissal of Alter's anticipatory breach claim, because the board's refusal to approve the sale made the contract's performance impossible.)
O ye of little faith!
To download a copy of the Appellate Division's decision, please use this link: Alter v. Levine