Facts

In 2003, SunCal La Quinta, LLC, a land developer, entered into an agreement to purchase 628 acres of raw land from Jacqueline Eston, and Ulla Petersen ("Defendants") and Golden Acre Farms Inc. for $12.5 million. The parties agreed to close escrow on or before Feb. 19, 2006. Escrow did not close, and SunCal filed suit against Defendants for breach of contract in March 2006. Golden Acre also brought claims for breach of contract and indemnity against Defendants. After five years of litigation, the trial commenced on March 28, 2011. Defendants settled with Golden Acre on the first day of trial.

PLAINTIFF'S CONTENTIONS:
SunCal argued that it paid the deposit required under the parties' agreement in order to purchase the property and that it signed all of the required closing documents. According to SunCal, escrow did not close because Defendants backed out of the deal in order to obtain a higher purchase price.

DEFENDANTS' CONTENTIONS:
Defendants argued that SunCal failed to properly exercise an option to extend the escrow close date; that SunCal received its interest in the property based on an improper assignment of the purchase rights; that SunCal failed to deliver the escrow closing documents reasonably in advance of the close date; and that SunCal refused to provide financial documents in bad faith.

Result

The jury awarded SunCal $4,695,200 on its claim for breach contract, finding that SunCal performed all acts required under the agreement and that defendants' failure to perform was not excused. SunCal was also awarded $2,415,126.78 in pre-judgment interest from February 19, 2006 through April 13, 2011, plus pre-judgment interest of $1,286.01 per day from April 13, 2011 until May 6, 2011, for a total sum of $7,139,905.01.