United States Court of Appeals For the Seventh Circuit
Consumer Protection — ILSFDA
The ILSFDA does not impose a 15 percent cap on damages.
“Burke also argues that even if the contract is enforceable and the developer is entitled to keep some of his earnest money as a result of his breach, the ILSFDA means that the developer may only keep an amount equal to 15% of the purchase price. Once again, we disagree. Section 1703(d)(3) does not create a maximum of 15% of the purchase price as the measure of liquidated damages upon a purchaser’s breach. It explicitly states that the amount the seller is to refund is 15% of the purchase price, ‘or the amount of damages incurred by the seller,’ whichever is greater, 15 U.S.C. § 1703(d)(3) (emphasis added), so the 15% figure in the ILSFDA is not a cap on damages.”
11-3208 Burke v. 401 N. Wabash Venture, LLC
Appeal from the United States District Court for the Northern District of Illinois, Marovich, J., Williams, J.