Answer

You need to read the contract carefully, as that will control. Typically when escrow is made non-refundable, it becomes what is known as "liquidated damages" which is to say that is the limit you can seek for breach of contract. Otherwise you would need to sue for actual damages...that is the damages you have suffered...but you will need to prove the amount, and must show why you deserve more than $20k. That is, if you pursue actual damages, you start at $0 and must show the court why you are owed $20k.

I suspect you will be better off seeking the $20k.

I would sue for this amount...or depending on the state, you may be able to get a good part of this in small claims and save your lawyer fees, which unless the contract provides differently, you are responsible for paying.


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Expert:	psimmons
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Answered:	1/1/2009

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