Hutton v. Gliksberg

In Hutton v. Gliksberg (1982) 128 Cal. App. 3d 240, an action for specific performance arising out of the sale of real property, the Court of Appeal affirmed an award of compensation to the buyers for the increased mortgage interest rates incurred due to the sellers' failure to convey the property. The court disagreed with the sellers' contention that the buyers would not actually suffer the amount of damages calculated by the court unless they held the property for the entire 30-year term of the loan, and that buyers could reap a windfall profit at the expense of sellers by reselling the property any time sooner than 30 years. The court concluded that if in the future the buyers were to resell the property subject to a higher interest rate loan, they would get a lower purchase price. (Id. at p. 252.)