Finnegan's Wake v. Hero Mountain CA2/7

INTRODUCTION

Finnegan’s Wake, LP appeals from the judgment following a court trial where the court ruled in favor of Hero Mountain, LLC and allowed it to retain as liquidated damages $200,000 Finnegan’s Wake had paid Hero Mountain under the terms of a real estate purchase agreement. Finnegan’s Wake argues the court erred in finding the liquidated damages provisions of that agreement were enforceable. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

A. Finnegan’s Wake and Hero Mountain Enter into a Real Estate Purchase Agreement In March 2020 Landmark Properties, a predecessor in interest of Finnegan’s Wake, and Hero Mountain entered into a purchase agreement and escrow instructions for the sale by Hero Mountain of a multiunit residential property. The purchase price in the original agreement was $9,250,000, which was later reduced to $9,150,000. Landmark Properties agreed to pay a deposit of $200,000 to the escrow company. The agreement included a liquidated damages provision stating Hero Mountain would retain the deposit if Landmark Properties failed to complete the purchase because of its default. Landmark Properties and Hero Mountain extended the closing date six times. On…