Gene Altman wanted to buy a cooperative unit from Kenneth and Diane Kaplan.
Soon after placing a deposit of $230,000 in escrow, Altman suffered a stroke and died.
Although the estate representative demanded the return of the proceeds, the Kaplans refused the request, claiming the contract was binding on Altman's heirs.
When litigation ensued, the New York County Supreme Court found the contract enforceable and dismissed the case.
On appeal, the Appellate Division, First Department, rejected the argument that Altman's death justified nonperformance -- particularly since the parties' contract addressed that particular contingency.
Because the estate representative had been obligated to seek the cooperative's approval, that failure to do so -- coupled with the agreement's repudiation -- entitled the Kaplans to keep the $230,000 downpayment as liquidated damages.
Not that's some parting gift.
To view a copy of the Appellate Division's decision, please use this link: Warner v. Kaplan