Ralph D. Cohn, Inc. v. Trawick

HOOD, Associate Judge.

Plaintiff, a Negro, entered into a contract for the purchase of real estate. Before the contract was finally consummated he learned that the property was subject to a covenant, the purported effect of which was that no sale of the property should be made to a Negro. Thereupon he refused to complete the contract and brought this action to recover from defendant, the broker who negotiated the contract, the cash deposit placed with the broker at time of execution of the contract.

The trial court found as a fact that plaintiff had no knowledge of the covenant until settlement…