Cohen v. Champlain Towers North Associates
Docket: Nos. 83-1871, 83-2876
Court: District Court of Appeal of Florida; June 19, 1984; Florida; State Appellate Court
Sylvia Cohen sought rescission of a Purchase and Sale Agreement for a condominium and the return of a $26,600 deposit, while the developer, Champlain Towers North Associates, counterclaimed to retain the deposit, arguing Cohen anticipatorily breached the agreement. The unit's selling price was $133,000, with a mortgage component specified in the agreement. Cohen qualified for only a $40,000 mortgage, leading her to request the return of her deposit as she could not accept a proposed 50% balloon mortgage. After failing to close by the deadline, she was informed of her default. The key legal question was whether the developer could keep Cohen's deposit despite not proving its ability to fulfill the financing condition precedent outlined in the contract. The developer claimed it was relieved of this obligation due to Cohen's anticipatory breach, but the court referenced the precedent set in *Hospital Mortgage Group v. First Prudential Development Corp.*, which states that a party cannot benefit from an anticipatory repudiation if it would have breached itself. The developer did not demonstrate it could provide a loan under the contract’s terms, as its financing was not comparable to institutional lenders. The court reversed the judgment in favor of the developer, instructing that a judgment be entered for Cohen. Additionally, the court found the trial judge erred in invalidating a Florida Administrative Code rule due to the Division of Florida Land Sales and Condominiums not being joined as a party.