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CITY OF NEW YORK, Appellant, v. HANNAH FREEDAS, Also Known as HANNAH KURTZ, Respondent.

In an action by a vendor under two sales of real property by public auction, with written memoranda and terms of sale, plaintiff appeals from a judgment of the Supreme Court, Kings County, entered September 16, 1969, in favor of defendant after a nonjury trial. Judgment reversed, on the law and the facts, with costs, and judgment granted in favor of plaintiff against defendant in the amount of $21,600. In our opinion, the contractual provision that the defaulting purchaser shall be liable for any deficiency which might result from a resale established the measure of damages. That measure of damages is not shocking to moral sense or grossly disproportionate to the probable injury or damage arising from the breach and is not penal in nature. Nor did the reservation of a right of cancellation deprive the contracts of mutuality of obligation and render them unenforceable (cf. City of New York v. Union News Co., 222 N.Y. 263; Min-Lee Assoc. v. City of New York, 28 A.D.2d 553; see McCall Co. v. Wright, 133 App. Div. 62, 68, affd. 198 N.Y. 143; Realty Adv. Supply Co. v. Englebert Tyre Co., 89 Misc. 371). Rabin, P.J., Shapiro, Christ and Benjamin, JJ., concur.

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CITY OF NEW YORK v. FREEDAS
(Jan 25, 1971)