Two Simplified Rules lawsuits arose from a failed commercial real estate transaction.
The vendor refused to close, alleging the transaction was an illegal contract because the purchaser made an additional $25,000 cash payment to the vendor's principal to offset capital gains.
The court found the vendor's principal orchestrated the cash payment to extract a higher price and used the illegality argument as a pretext to avoid closing.
The court held the transaction was not illegal and the purchaser was ready, willing, and able to close.
The plaintiffs were awarded damages for the lost real estate commission and out-of-pocket expenses incurred in anticipation of closing.
