Kulakowski v. Leavitt

This is an action by prospective purchasers Richard B. and Phyllis Kula-kowski (“the Kulakowskis”) to recover a real estate deposit following their termination of the parties’ purchase and sale agreement because of an inability to obtain mortgage financing. The defendant-seller, William H. Leavitt (“Leavitt”), alleged that the Kula-kowskis’ failure to comply with the terms of the mortgage contingency clause precluded their proper termination of the agreement, and counterclaimed for consequential damages in excess of the liquidated amount of the deposit. After trial, the court found that the…