Pines Plaza Ltd. P'ship v. Berkley Trace, LLC
Annotate this CaseThis dispute arose out of a contract to sell a shopping center. The contract was amended on several occasions. In one provision, the buyer agreed to indemnify the seller for a real estate commission, which they both disclaimed in the contract itself, that might ultimately be owed to a particular real estate broker. Another provision provided for forfeiture of the buyer's deposit if the transaction did not close on the timetable in the contract. The transaction ultimately closed after the appointed date, and the real estate broker successfully sued the seller for a commission. The buyer went bankrupt, and the seller and the assignee investors were left to sort of the consequences of the course of events. The Court of Appeals held (1) the seller here was not entitled to indemnification from the assignee investors for its liability for the broker's commission, even though the buyer (their assignor) was obligated to indemnify the seller; (2) the seller was not entitled to forfeit the deposit funded by the investors; and (3) the seller was entitled to have the investors' claim for refund of the deposit offset by the amount of indemnification that the buyer owed the seller.
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