Procedural Posture
Plaintiff buyers sought review of the judgment by the Superior Court of Santa Barbara (California) in favor of defendant seller in the buyers' action for restitution in connection with an abortive sale of real property. The buyers contended that they were entitled to the money paid by them after the escrow was cancelled after they were unable to obtain financing.
Overview
The buyers attacked the validity of the damage items allowed by the trial court as natural consequences of the breach, contending that none of them were proper set-offs as the property value remained constant, and the property was resold at the same price. The court agreed, finding that the damages claimed by the seller were incidental to the use and ownership of the property and the expenses would have been incurred if the seller never entered a contract with the buyers. Tenants’ definition, a person or group that rents and occupies land, a house, an office, or the like, from another for a period of time; lessee. The court held that the trial court held that the due to the buyers default, the seller had to expend sums in excess of the money given. The court held the trial court's findings were a complete omission of any findings on the use of the property during the times the items of expenses were incurred. The court found that under Cal. Civ. Code § 3353, there should have been finding if the resale was made with reasonable diligence. The court concluded that since the trial court did not provide adequate guidance for resolution of the issues presented, the case was reversed.
Outcome
The court reversed the judgment in favor of the seller.
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