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Massachusetts Appeals Court - 485 N.E.2d 680, 21 Mass. App. Ct. 97
Tags: Contracts, damages calculation, real estate
tl;dr:
Company backed out on property sale deal. Non-breaching party entitled to actual losses because they were foreseeable.Video Summary
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The case involves a dispute between American Mechanical Corporation and Union Machine Company of Lynn, Inc. over breach of contract and violation of G. L. c. 93A. The lower court erred in concluding that damages were not recoverable beyond nominal damages and that the c. 93A claim was not viable. The majority opinion disagreed and found that damages were recoverable and the c. 93A claim was viable. Union breached the contract by placing a stop payment order on the check given to American, and later informing them that they would not proceed with the purchase. The judge ruled against Union on the Statute of Frauds and mortgage contingency issues. However, American failed to prove actual damages as they did not provide any evidence of the market value of the property on the date of the breach.
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