The plaintiff purchaser brought a motion for judgment against the defendant vendors for breach of an agreement of purchase and sale for seven apartment buildings.
The defendants failed to discharge mortgages on title prior to closing, breaching the agreement.
The plaintiff sought damages for sunk costs and over $56 million for lost capital appreciation, based on the defendants' subsequent sale of the properties 2.5 years later.
The court awarded the sunk costs but dismissed the claim for lost profits, holding that damages must be assessed at the closing date and that the plaintiff, an international real estate investor, had mitigated its losses by deploying its funds elsewhere.