When Biserka Kargacin bounced an installment payment for a newly-constructed $2.35-million home, Leonard Sacks sued to recover $235,000--a sum which had been designated as "liquidated damages" in the event of a default.
After the Suffolk County Supreme Court dismissed his case, Sacks appealed.
Because she conditioned the payment on Sacks' performance of certain repairs by August 1, and that work hadn't been completed by July 28, Kargacin thought she was free to walk away from the deal. But even if that August 1 date had been part of the bargain, the Appellate Division, Second Department, thought Kargacin was guilty of breaching the agreement because she cancelled prior to that purported deadline.
Now that's a pearl.
To view a copy of the Appellate Division's decision, please use this link: Sacks v. Kargacin