Real Property – Sale – Specific performance

Where a defendant seller has stipulated to having breached a land contract, specific performance is the proper remedy to give each party the benefit of the bargain without being inequitable.

“Defendant, DETROIT PUBLIC SCHOOLS COMMUNINTY DISTRICT, (DPSCD), hereinafter, Defendant, has filed a Motion in Limine to limit Plaintiff's remedy to specific performance and requests this Court to dismiss Plaintiff's lawsuit in its entirety. Alternatively, Defendant requests this Court to preclude Plaintiff from submitting argument or evidence that would establish the measure of damages as the difference between the purchase price and value of the property at time of alleged breach.

“In its Breach of Contract claim (Count I), Plaintiff requests specific performance and lost profits damages, injunctive relief, and attorney fees and costs. The Court already denied the request for damages for lost profits. Thus, the question then is whether the Court should order specific performance to convey the property to Plaintiff as opposed to the difference between the contract and market prices at the time of the breach. Indeed, as Defendant argues, Plaintiff does not request this remedy in its complaint.

“Plaintiff's argument in response to the motion is that it is not impracticable to have a retrospective appraisal performed. In the Court's view, granting damages in the form of the difference between the contract price and the value of the property at the time of the breach as well as specific performance would be windfall to Plaintiff and be inequitable.

“The power to grant specific performance rests within the sound discretion of the court and specific performance of a contract for the purchase of real estate should be granted, absent some showing that to do so would be inequitable. Courts have the power to grant specific performance of any agreement involving land, or any estate or interest in land, regardless of a remedy at law.

“Thus, although Plaintiff has requested both specific performance and damages in the form of the value of the property, this Court has the power to grant specific performance to give each party the benefit of the contract, as long as it would not work an injustice. ... In this matter, Defendant stipulates to its breach of the contract, and as such, specific performance is the proper remedy to give each party the benefit of the bargain without being inequitable. The Court, however, finds that Plaintiff is entitled to attorney fees and costs for having to prosecute this case due to Defendant's continual refusal to go forward to close the sale of the property.”

Power in the Praises Church v. Detroit Pub. Sch. Cmty. Dist.; MiLW 10-108063, 5 pages; Wayne Circuit Court; Berry, J.

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