The plaintiff developer entered into agreements of purchase and sale with the defendant for commercial properties, which included a mutual lease condition for a leaseback arrangement.
As the condition deadline approached, the defendant assured the plaintiff it would continue negotiating the leases but secretly sought board approval to sell the properties to a third party.
The defendant then terminated the agreements.
The court found the defendant breached its duty of good faith and honest performance, and was liable for negligent misrepresentation.
Applying promissory estoppel, the court held the defendant could not rely on its strict contractual rights to terminate.
The plaintiff was awarded $15.5 million in damages for lost profits.