Laba v. Carey case brief summary
277 N.E.2d 641 (1971)
Appellant seller challenged the decision
of the Appellate Division of the Supreme Court in the Second Judicial
Department (New York), which reversed an order granting seller's
cross motion for summary judgment in an action to recover a down
payment made by buyers under a contract for the sale of realty.
Appellants also sought to enforce their vendees' lien and to recover
their expenses for examination of title and their counsel fees.
CASE FACTS The parties entered into a written
agreement for the purchase and sale of a parcel of real property. The
buyers made a down payment that was to be refunded if seller failed
to perform. During the title search, an easement and restrictive
covenant were found. At closing, the buyers rejected the deed on the
ground that the seller was unable to deliver a good, marketable and
insurable title. The buyers sought recovery of their downpayment and
the appellate division found that in their favor.
On review, the
court reversed and found that the seller did everything he was
required to do under the agreement.
The court determined that the
title company assumed responsibility for no less than what the buyers
had expressly agreed to accept because it excluded the easement and
covenant from coverage.
The court concluded that the buyers had
failed to show that the easement or covenant rendered the title
The order granting seller's cross motion for summary judgment was
reversed. Suggested law school study materials
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