The defendant brought a summary judgment motion seeking dismissal of an action for specific performance and damages arising from a failed real estate transaction, and alternatively sought discharge of a certificate of pending litigation.
The purchaser failed to close on the contractual closing date due to a series of unforeseen issues beyond its control, though the vendor refused to close the following day.
The court held that allegations that the vendor acted in bad faith by relying on the “time of the essence” clause to terminate the contract raised genuine issues requiring a trial.
However, the court concluded the property was acquired for investment purposes and the purchaser failed to establish that the property was unique.
The certificate of pending litigation was therefore discharged while the underlying action proceeded.
