Barnes v. Sind Brief for Appellant
Public Court Documents
January 1, 1965

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Brief Collection, LDF Court Filings. Barnes v. Sind Brief for Appellant, 1965. 1b022784-be9a-ee11-be36-6045bdeb8873. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/b93e3fd6-c282-4038-8f98-047540e3d928/barnes-v-sind-brief-for-appellant. Accessed April 28, 2025.
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IN THE United States Court of Appeals POE THE FOURTH CIRCUIT No. 9608 ROLAND E. BARNES, Appellant and Cross-Appellee, vs. ABRAHAM S. SIND a n d ISRAEL COHEN, PART NERS, TRADING AS A. SIND & ASSOCIATES, a n d ABRAHAM S. SIND a n d ISRAEL COHEN, INDI VIDUALLY, Appellees and Cross-Appellants. BRIEF FOR APPELLANT J oseph L. Rauh, J r., J ohn Silard, 1625 K Street, N.W., Washington 6, D, C., Attorneys for Appellant. TABLE OF CONTENTS Page Statement of the Case............................................... 1 Argument .................................................................. 4 I. The Substitution in the Decree of Specific Performance of a Quit-Claim Deed for the Promised Warranty Deed, Constitutes Prej udicial E rro r..................................................... 4 II. The Court Below Erred, in Refusing to En force the Liquidated Damage Clause of the Agreement ....................................................... 5 Conclusion ..................................................................... Id C ita tio n s Baltimore Bridge Co. v. United Railways, 93 A. 40, 125 Md. 208.................................................................. 6 Boston Iron & Metal Co. v. United States, 55 F. 2d 126, cert, denied 286 U.S. 558..................................... 6 Cowan v. Meyer, 94 A. 18, 125 Md. 45....................... 6 Graham v. Cooper, 86 A. 991, 119 Md. 358................ 6 United Surety Co. v. Summers, 72 A. 775, 110 Md. 950 6 M is c e l l a n e o u s Corbin on Contracts, §1072........................................... 6 Pomeroy, Specific Performance of Contracts, § 10. . 4 Restatement of Contracts, § 235................................... 5 West’s Maryland Law Encyclopedia, Damages, § 99 6 —2519-7 IN' THE United States Court of Appeals FOB TH E FOURTH CIRCUIT No. 9608 ROLAND E. BARNES, Appellant and Cross-Appellee, vs. ABRAHAM S. SIND a n d ISRAEL COHEN, PART NERS, TRADING AS A. SIND & ASSOCIATES, a n d ABRAHAM S. SIND a n d ISRAEL COHEN, INDI VIDUALLY, Appellees and Cross-Appellants. BRIEF FOR APPELLANT Statement of the Case Plaintiff-Appellant, Dr. Roland E. Barnes, is principal of the Travilah Elementary School in Rockville, Maryland, presently absent on leave as an educational consultant in Afghanistan. In 1961 when Mrs. Barnes also became em ployed in the Rockville school system and their two chil dren enrolled in school there, the daily travel from the Barnes ’ residence in the District of Columbia to Rockville was found too burdensome. Accordingly, in the summer of 1961 the Barneses, who are Negroes, determined to purchase a home in the Rockville, Maryland area. Having seen defendants’ advertisement in a Washington (1) 2 paper, Dr. Barnes, on October 9, 1961, visited the Rock ville housing development owned and being constructed by defendants. Dr. Barnes found the proffered homes suitable; he selected a style of house and location (Lot 9, Block 3), sig’ned a purchase agreement which was counter signed by the realtor’s agent on the premises (infra, Ap pendix p. 13) and put down a one thousand dollar deposit. But two days later the deposit was returned by the realtor with a notation that “ this deal cannot- be consummated at this time.” It subsequently appeared that this action was occasioned by the realtor’s understanding that de fendants did not desire to sell to Negroes. Dr. Barnes promptly retained present counsel, who com municated with the realtor and then with defendants, and in due course he and defendants sat down with their attor neys at a negotiating meeting on November 28, 1961. At that meeting, defendants stated they would sell a house to Dr. Barnes in about two years, but that an earlier sale to a Negro (the purchase agreement had stipulated March 15, 1962 as occupancy date) would hurt their sales in the development (Tr., p. 69). Dr. Barnes, on the other hand, urged that it was essential for his family to move into a new home in the Rockville area by the September com mencement of the 1962-63 school year (Tr., p. 72). After further negotiations and following threat of suit by plain tiff, a settlement agreement was signed between the par ties on January 9, 1962 under which the defendants agreed to provide Dr. Barnes with the house and lot he had origi nally selected or “ an identical house on an equivalent lot” in their development no later than August 30, 1962, under the same terms stated in the purchase agreement of Octo ber 9, 1961 (infra, Appendix p. 16). On July 31, 1962, prior to the agreed transfer date, defendants did offer Dr. Barnes a house which was identi cal to the one he had selected; however, this house was 3 not on an equivalent lot but on one far less desirable and significantly smaller in size. Defendant Sind conceded on cross-examination below (Tr., p. 356), that he had selected this as the only lot to be offered to Dr. Barnes because, unlike the first property which was prominently situated, at the one offered to Dr. Barnes he would be hidden from view: “ I thought, if I put the man in the middle of a block, he might not be seen as often.” Plaintiff, following defendants’ refusal to arbitrate in accordance with the contractual arbitration clause, sued for breach of contract in October of 1962. After ah exten sive trial, the District Court ruled that defendants were guilty of the breach alleged in that the offered lot was not equivalent to the one plaintiff had originally selected in a number of significant respects (infra, Appendix p. 40), and that therefore the defendants breached their agree ment to sell to plaintiff the original house on Lot 9, Block 3 or “ an identical house on an equivalent lot.” The Dis trict Court granted specific performance to plaintiff for the transfer of the house and property located at 11810 Smoke Tree Road—the lot among those still available at the time of trial most nearly alike to the one first chosen by Dr. Barnes. The Court also awarded plaintiff compen satory damages for delay in performance in the amount of $1,500 on account of extra travel costs incurred by Dr. Barnes when he was unable to move near his school in Rockville during the 1962-63 academic year. Plaintiff has appealed, asserting the inadequacy of the remedy granted by the District Court in that: (1) instead of the “special warranty deed” promised in the settlement agreement being enforced, the decree of specific performance requires defend ants only to give a quit-claim deed with possible dower rights reserved, and 4 (2) the District Court erroneously refused to enforce the liquidated damage clause of the settlement agreement. We set forth in the Argument further facts bearing upon our two allegations of error by the District Court. ARGUMENT I. The Substitution in the Decree of Specific Performance of a Quit-Claim Deed for the Promised Warranty Deed, Constitutes Prejudicial Error. The Court below, having found that the defendants vio lated their settlement agreement of .January 9, 1962, and that the agreement was sufficiently precise to support equity enforcement, granted the usual specific perform ance available on an agreement for the transfer of realty. Pomeroy, Specific Performance of Contracts, § 10. But without explanation and contrary to the contractual obli gation of the defendants which the Court in its opinion purported to enforce, the decree substitutes (infra, Appen dix p. 46) a mere quit-claim deed of “ defendants’ right, title, and interest . . . subject also to the possible dower interest of Judy Sind,” in place of the “ special warranty deed” promised in the settlement agreement. The orig inal purchase agreement of October 9, 1961 stipulated (infra, Appendix p. 12) that sellers agreed to execute and deliver “a good and sufficient special warranty deed,” and this stipulation was incorporated in the settlement agreement of January 9, 1962, which provided that the owners would deliver a completed house to Dr. Barnes “at the price and terms set forth in the house purchase docu ment of October 9” (infra, Appendix p. 16). By the arbi trary substitution of a quit-claim deed with possible dower 0 reserved, plaintiff would be forced to pay the full purchase price for the acquisition of his home, without subsequent recourse should defendants’ title prove defective for dower or other reasons. This is in sharp contrast to the express agreement between the parties, wherein defendants had promised a warranty deed. Clearly, the decree of specific performance materially alters the promised transfer of fully warranted title. When a contractual promise is clear and nothing implies an unusual usage by the parties, it should be construed in accordance with its plain meaning. Restatement of Con tracts, § 235. The contract having been breached by de fendants and found amenable to specific performance, the substitution of a quit-claim deed for the expressly prom ised warranty deed constitutes plain error which requires correction by this Court. II. The Court Below Erred in Refusing to Enforce the Liquidated Damage Clause of the Agreement Dr. Barnes was originally induced to seek a new home in the Rockville area because of financial, time, and per sonal burdens on the family, of extensive daily commuting from the District of Columbia. In October (see Plaintiff’s Exhibit 10) and at the pre-settlement negotiating meeting in November of 1961, Dr. Barnes emphasized to defendants the necessity of obtaining a home in the Rockville area before September, 1962, to avoid these family burdens during the next school year. Defendants, however, de clared their reluctance to permit occupancy until a later time, fearing an impact upon sales in the project. Under these circumstances, Dr. Barnes could reasonably anticipate possible delay by defendants in their performance under the settlement agreement; accordingly, a clause was in serted in that contract (infra, Appendix p. 17) providing 6 for $100 a day for delay in performance after August 31, 1962, but in no event to exceed $15,000. The District Court ruled this clause to be a penalty; in our view this was not an unreasonable provision under the circumstances pre sented. For delay in performance, provisos similar to the clause here involved have been upheld by this Court and the Maryland Supreme Court. See Boston Iron & Metal Co. v. United States, 55 F. 2d 126, cert, denied 286 U.S. 558; Baltimore Bridge Co. v. United Railways, 93 A. 40, 125 Md. 208; Cowan v. Meyer, 94 A. 18, 125 Md. 45; United Surety Co. v. Summers, 72 A. 775, 110 Md. 950; Graham v. Cooper, 86 A. 991, 119 Md. 358. Such clauses for delay in building contracts are “ usually construed as liquidated damages . . . principally on the ground of the uncertainty in calculating the damages . . . ” West’s Maryland Law Encyclopedia, Damages, § 99. See, generally, Corbin on Contracts, Section 1072. In this case, damages from delay were most difficult of precise measurement and the contractually stipulated amount was not unreasonable or exorbitant. By any fair calculation, the additional calculable financial bur den imposed upon the Barnes family by the failure of the. owners to perform, as promised, in August of 1962, and the Barneses’ consequent continued “ dual life” in Washington and Maryland, is twenty-one dollars per day. An itemized daily schedule (infra, Appendix p. 33) of travel and related costs was incorporated in “ Plaintiff’s Answers to Questions Not Answered at Deposition” : $7.00 for fair rental value of the property withheld from plain tiff ; $9.20 for extra fuel, mileage, and car depreciation; $9.00 for two hours of additional travel per day for Mr. and Mrs. Barnes; and $1 for child care payments. This assessable $21.20 per day of special damages represents 7 ovei $6,000 for the 1962-63 school year, during which the Barneses were forced to continue their dual existence, commuting the long drive from home to school each day.5 And there are even larger professional losses; it is pre cisely because of the seriousness of these damages, difficult to calculate in exact monetary terms, that the liquidated damages clause was appropriate. A principal item of such losses was the restricted opportunity for Dr. Barnes, a school principal and Mrs. Barries, a teacher-consultant for visually handicapped children, to spend time and circulate after school hours in the community from which their students and colleagues were drawn. As Dr. and Mrs. Barnes testified (infra, Appendix pp. 19 to 27), it was bur densome and difficult after taking their children home in the afternoon on a 45-minute car trip, to return to the school area again in the evening to attend after-hours pro fessional meetings." Professional advancement for career educators requires more than minimal school attendance during- duty hours. When normal after-hours association with fellow educators and in the larger school community was precluded by the burdens of their “ dual life,” Dr. and Mrs. Barnes were injured in an important aspect of their professional careers. Such injury, no less than extra trans portation costs, was part of the foreseeable special damage from delay in defendants’ performance. The plaintiff was required to drive an additional twenty-two miles a day through congested areas, which would have been obviated by the move to the Rockville location; Mrs. Barnes was required daily to drive an addi tional twenty-four miles to her Rockville office (seventeen miles from the District as compared to five from defendants’ project), and some ten addi tional miles to transport her children to their schools (infra, Appendix pp. 19, 25, 27). . 2 For the same reason, the Barnes children lost the opportunity of regular after-school association with their classmates, were required to forego such opportunities as school patrol and assistant libarian, and were curtailed in their participation in the glee club, the band, and the drama society {infra, Appendix pp. 27 to 29). 8 Finally, in determining the propriety of the liquidated damages clause, it must be remembered that defendants’ reluctance to conclude the settlement agreement was avow edly because of Dr. Barnes’ race—-the very fact which later led defendants to offer him a “ hidden” and unequiv alent lot and thus breach their agreement. In the antici pated possibility of non-compliance by the defendants there was thus an additional racial ingredient. Having consented to delay in the transfer of a home by defend ants until just before the opening of the 1962 school year, it was reasonable for plaintiff to include in the injiiries redressable by the liquidated damages, that default by defendants would likely be occasioned (as it ultimately was) by invidious racial discrimination. The insult and indignity of such a breach was properly an ingredient of the substantial liquidated damages, since racial discrimi nation is no less serious a personal injury for being diffi cult to measure in monetary terms. # # # * * * * Plaintiff’s special damages from the defendants’ delay in this case are certainly substantial, and they were clearly foreseeable at the time the settlement agreement was con cluded. Thus, the agreement itself {infra, Appendix p. 17) predicated the liquidated damages expressly upon the losses “ that will be suffered by Barnes and his family in not obtaining . . . a substantially equivalent house prior to the opening of the 1962-63 school year.” And the na ture of these damages was clearly set forth in the earlier communication of October 19, 1961 from plaintiff’s attor ney, a copy of which was received by defendant Sind on October 27, 1961 (Plaintiff’s Exhibits 10 and 11) which stated in pertinent part: 9 “ The purchase of this house and lot is a matter of substantial importance to the Barnes family. Mr. Barnes is employed by the Montgomery County Board of Education and works in the Rockville area. His twT0 children attend school in Rockville. The house on Charen Lane which Mr. Barnes purchased will materially improve the quality of life of the Barnes family. Not only will it avoid daily burdensome trans portation, but even more so it will make it possible for the Barneses to live in the community where Mr. Barnes works and where the Barnes children go to school and thus integrate their lives into the commu nity where they spend their days.” Considering the monetary, professional, and racial im plications of a breach of defendants’ all-important prom ise to make occupancy available to the Barnes family be fore August 31, 1962, it was certainly reasonable for the settlement agreement to include a substantial liquidated damages clause. True, $100 a day was a large figure, but the period of 150 days after which no further accumula tion of liquidated damages was to ensue was correspond ingly short: thus, had the daily figure been set instead at $20 without a cut-off, to present date there would have been accumulation of the same $15,000 under the liquidated damages clause. Taken in its entirety, including (1) the calculable $21 of daily special damages, (2) the loss for Dr. and Mrs. Barnes of the professional opportunity of association after school hours with their school commu nity and colleagues, (3) the anticipatable racial insult of the defendants’ breach, and (4) the short period during which the liquidated damages were to accumulate, it seems clear that the liquidated damage clause set by the parties was not unreasonable, and that accordingly it should have been honored by the District Court. 10 Conclusion It is respectfully urged that the Court should remand this case for appropriate corrections in the decree in ac cordance with the principles above set forth. Respectfully submitted, J o se ph L. B atth, J r ., J o h n S ilard , 1625 K Street, N.W., Washington 6, D. C., Attorneys for Appellant. APPENDIX T able oe C o n ten ts Page C o m pla in t fob B reach of C ontract and S pe c if ic P erform ance ............................................................................. 1 E x h ib it A — A d v er tisem en t , W a sh in g to n P ost, O ctober 7, 1 9 6 1 .............................................................. • ' E x h ib it B — P u rch a se A g r e e m e n t , O ctober 9, 1961 .................................................. 12 E x h ib it C— A g reem en t of S e t t l e m e n t , J a n u ary 9, 1 9 6 2 .......................................................................... 15 E xcerpts from T r a n sc r ipt of T e stim o n y of Dr. and M rs . B a r n e s ................................................................................. 19 P l a in t if f ’s A n sw ers to Q u e st io n s N ot A n sw ered at D epo sitio n on N ovember 29, 1 9 6 2 ................................... 34 O p in io n — J udge R oszel C. T h o m s e n .................................. 35 D ecree ............................................................................................... APPENDIX October 25, 1962 I n t h e U n it e d S tates D istrict C ourt for t h e D istr ic t of M aryland Civil No. 14,155 R oland E. B arn es , 310 A lliso n S t r eet , N.W., W a sh in g t o n , D. C., Plaintiff, v. A. S in d & A ssociates, a C orporation , 8226 F e n t o n S tr eet , S ilver S p r in g , M aryland , and A braham S. S in d , 3716 K e n il w o r t h D rivew ay , C h ev y C h a se , M aryland , and I srael C o h e n , 6411 E ast H albert R oad, R eth esd a , M ary land , Defendants. C o m pla in t U nder 28 U.S.C. 1332, 2201, 2202 for Breach of C ontract and S p e c if ic P erform ance Comes now plaintiff and for his cause of action herein alleges as follows: 1. This is a civil action for monetary, declaratory and equitable relief, based upon 28 U.S.C. 1332 and 28 U.S.C. 2201, 2202. The amount in controversy exceeds Ten Thou sand ($10,000) Dollars exclusive of interest and costs. 2. Plaintiff is a citizen and resident of the District of Columbia, residing* at 310 Allison Street, N.W., Washing ton, D.C. 3. Defendant A. Sind & Associates is a corporation in corporated in the State of Maryland and having its prin cipal place of business at 8226 Fenton Street, Silver Spring, Maryland. Defendant Abraham S. Sind, a citizen and resi dent of Maryland, is principal stockholder and owner of the defendant corporation, and resides at 3716 Kenilworth Driveway, Chevy Chase, Maryland. Defendant Israel ( 1 ) Cohen, a citizen and resident of Maryland, resides at 6411 East Halbert Road, Bethesda, Maryland. 4. Plaintiff, a Negro, has been employed in the school system of Montgomery County at Rockville, Maryland, for the past three years. He is Principal of the Travilah Ele mentary School located near Rockville, Maryland. In addi tion to spending his regular working hours at the school near Rockville, Maryland, plaintiff or his wife must daily transport his children to and from Rockville, where they are enrolled at the West Rockville and Richard Montgomery Schools. Plaintiff’s wife is employed by the Montgomery County School Board as a specialist in giving assistance to partially seeing children and has her office in Rockville, Maryland. 5. Plaintiff’s residence in the District of Columbia is some 22 miles from the place of his employment near Rock ville. The transportation of plaintiff, his wife and his chil dren to and from Rockville each day is a great burden upon plaintiff and his family. Plaintiff cannot fully per form his functions as School Principal while he is so dis tantly separated from the area from which his school draws its student population, and his wife and children suffer from employment and school life in one area and home life in another. For these reasons, on or about August 1961, plaintiff decided to purchase a home in Montgomery County, Maryland. 6. On October 7, 1961, plaintiff read an advertisement by defendant A. Sind & Associates in the Washington Post- Times Herald inviting the public to examine and purchase homes in the “ Georgetowne Hill” area in Montgomery County. A true copy of said advertisement is attached to this Complaint as “ Exhibit A ” and made a part hereof. The advertisement indicated the availability of homes in the GeOrgetowne Hill area, including four different models ranging in price from $22,950 to $25,990. 7. On October 9, 1961, pursuant to and relying upon the representations by defendant A. Sind & Associates con tained in said advertisement, plaintiff visited the George towne Hill area to examine and to seek to purchase, if found suitable, one of the homes advertised for sale. This area is approximately eight miles from plaintiff’s place of employment and it takes about twelve minutes by car from this area to plaintiff’s place of employment; the mileage and time are approximately five miles and nine minutes to plaintiff’s wife’s place of employment and to plaintiff’s children’s schools. 8. The individual defendants, acting directly and through and in the name of the corporate defendant herein, are the owners, builders and developers of the said ‘ ‘ Georgetowne Hill” area. Prior to October 9, 1961, they had retained as their sales agent for the “ Georgetowne Hill” properties the firm of Harmony Corporation, a real estate agency in corporated in the District of Columbia. They caused the advertisement upon which plaintiff relied (Exhibit A) to be placed in the Washington Post-Times Herald. 9. On October 9, 1961, plaintiff arrived at the George towne Hill location, examined three of the model homes on display and then visited the office maintained at that loca tion by the Harmony Corporation, where he met Mr. H. Glenn, an employee and sales agent of Harmony Corpora tion. Plaintiff informed Mr. Glenn that he was ready to purchase the “ Georgetowne Model.” Mr. Glenn, with both the authority and apparent authority of the defendants, the owners, builders and developers of the Georgetowne Hill properties, showed plaintiff various available locations where the “ Georgetowne Model” house was to be con structed and plaintiff then selected, with Mr. Glenn’s assist ance, Lot 9 in Block 3 as the desired location for his home. 10. After plaintiff selected the model and location afore said, Mr. Glenn drew up a formal contract for the purchase of said model and location, in which he inserted the “ esti mated delivery” date of “ March 15, 1962.” Plaintiff gave Mr. Glenn as a deposit a check in the amount of $200 and a personal note in the amount of $800, making a total of $1,000, the required deposit stated in the contract. Pur suant to Mr. Glenn’s instructions, plaintiff signed three identical copies of the contract. Mr. Glenn also signed the three copies, acting as agent for defendant A. Sind & Asso ciates. Mr. Glenn then gave plaintiff a copy, saying, “ You keep one copy of the contract; the other two I turn in to the office.” A true copy of said contract is attached to this Complaint as “ Exhibit B” and made a part hereof. 4 11. On October 11, 1961, plaintiff received by mail from the Harmony Corporation the $200 check and the $800 note he had given on October 9, with a notation stating, “ We are sorry but this deal cannot be consummated at this time.” Subsequent inquiry with the Harmony Corporation revealed defendants to be the owners, builders, developers, and sellers of the property involved and that they refused to go forward with the contract of sale solely because plain tiff is a Negro. 12. On October 27, 1961, plaintiff, through his attorney, informed the defendants that it was “ utterly clear that the fact that Mr. Barnes is a Negro and no other fact, has caused your refusal” to carry out the contract of October 9, 1961, and made demand upon the defendants to honor and go forward with the contract of October 9,1961. As a result of that demand, a representative of the defendants met with plaintiff’s counsel on November 17, 1961, and the individual defendants and their counsel met with plaintiff and his counsel on November 28, 1961. At both meetings the de fendants and their representatives repeatedly made clear that they could not carry out the contract of October 9, 1961, solely because plaintiff was a Negro. The defendants and their representatives asserted that plaintiff’s residence in the project of 42 houses which defendants were building might cause defendants to lose their financing, bring the public authorities down on defendants on such matters as zoning, sewer and water and the like, and cause potential buyers to go elsewhere. Discussion was had of alternative methods of settling the dispute, including a delay in plain tiff’s moving into the house covered by the contract of October 9, 1961, or the defendants finding plaintiff an equivalent house in the general Rockville area. Discussions continued through December 1961 without an agreement being reached. 13. On January 2, 1962, plaintiff’s counsel addressed a letter to defendants’ counsel, as follows: “ On January 9th three months will have elapsed since Mr. Barnes signed the agreement for the George town Hill house and we do not intend to permit fur ther delays in resolving this matter. Although we 0 sent you a settlement agreement on December 16th signed by Mr. Barnes, your clients have refused either to sign same or make any suggestions as to what they would sign. “ Our client, Roland E. Barnes, will file suit in the Federal District Court in Baltimore, Maryland, the morning of January 9th unless the matter is resolved by an executed agreement between the parties prior to that time. We will hold ourselves in readiness to meet with you at any time between now and January 9th if you so desire. We will not, however, postpone the date of filing suit any farther.” This settlement deadline of January 9, 1962 was reempha sized in another letter from plaintiff’s counsel to defend ant’s counsel on January 4, 1962. 14. On January 8, 1962, defendant Cohen telephoned Joseph L. Rauh, Jr., one of the attorneys for plaintiff, and stated that defendants would agree to a settlement along the lines previously suggested by plaintiff and asked for a further postponement of any suit by plaintiff. Rauh re fused the postponement. Defendant Cohen then asked Rauh if he would meet with him that evening and Rauh agreed to receive Cohen at his home that evening. At a lengthy eve ning conference at Rauh’s home on the evening of January 8, 1962, punctuated by calls by defendant Cohen to defendant Bind, the text of a settlement Agreement was agreed upon. On the morning of January 9, 1962, the individual defend ants appeared at Rauh’s office in the District of Columbia and read and signed the settlement Agreement, a true copy of which is appended hereto and made a part hereof as “ Exhibit C.” 15. The Agreement of January 9, 1962 was signed by plaintiff, by defendant Cohen, and by defendant Sind both for himself and on behalf of A. Sind & Associates. The Agreement (paragraph 6) obligated defendants, by no later than August 31, 1962, to deliver to plaintiff “ a completed house on Lot 9 in Block 3” as provided “ in the house pur chase document of October 9”, or “ an identical house on an equivalent lot” in the project of 42 houses being built 6 by defendants. The Agreement made the question of lot equivalence arbitrable, by Morris D. Schwartz, counsel for defendants, Joseph L. Rauh, counsel for plaintiff, and a third arbitrator to be chosen by them or as otherwise pro vided in the Agreement. 16. At the time of the signing of the Agreement of Janu ary 9, 1962, defendant Sind demanded a deposit from plain tiff of $1,000 in cash, which amount was delivered to Sind on January 16, 1962, to be applied to the purchase price of the house to be delivered to plaintiff under the Agreement of January 9, 1962. Said deposit is still in the possession of defendants. 17. One of the first houses sold by defendants in their project of 42 houses was on Lot 9 in Block 3 (11820 Charen Lane, Rockville, Md.). Defendants sold said house and lot to one David E. Bierer, who took same with full notice of defendants’ Agreement of January 9, 1962, and without making any effort to make certain that defendants were reserving for plaintiff an identical house on an equivalent lot. Defendants sold said house to Bierer in bad faith, without reserving an identical house on an equivalent lot for plaintiff, as they were obligated to do under the Agree ment of January 9, 1962. 18. On July 31, 1962, defendant Cohen escorted plaintiff and his wife to the Georgetowne Hill project and offered plaintiff 11801 Charen Lane as defendants’ purported ful fillment of the Agreement of January 9,1962. Plaintiff and his wife immediately told defendant Cohen that the prof fered lot was in no way equivalent to Lot 9 in Block 3 (11820 Charen Lane). Defendant Cohen stated to plaintiff and his wife that he was not obligated to provide an equiva lent lot, but simply to provide a house and lot within the project of 42 houses which defendants were building. 19. On August 2, 1962, Rauh addressed a letter to Morris D. Schwartz, who had been named as co-arbitrator in the Agreement of January 9, 1962, stating that the lot offered plaintiff was in no sense equivalent to Lot 9 in Block 3. In the letter plaintiff requested immediate arbitration re garding the equivalence of the proffered property to Lot 9 in Block 3, as provided in the Agreement of January 9, 1962. 7 20. On August 6, 1962, Schwartz told Rauh by telephone that he would be read}?* to inspect the property very promptly. On August 13, 1962, Schwartz told Rauh by telephone that he was considering declining to act as arbi trator and would let Rauh know promptly. On August 15, 1962, Schwartz wrote Rauh “ declining to act as an arbi trator under that agreement.” On August 16, 1962, Schwartz having declined to act as arbitrator, Rauh wrote Schwartz requesting that defendants “ designate an arbi trator at once so that the matter of the equivalence of the lot offered to Lot 9 in Block 3 can be promptly resolved.” No such arbitrator has ever been designated by defendants. 21. On August 23, 1962, plaintiff offered to accept 11823 Charen Lane, an unsold house in the defendants’ project of 42 houses, as settlement of defendants’ obligations under the Agreement of January 9, 1962. Although 11823 Charen Lane is clearly not equivalent to Lot 9 in Block 3, it is the closest to equivalence of the properties in the said project, and plaintiff offered to accept it as equivalent if plaintiff “ received $2,000 for fencing, landscaping, and trees to bring the two lots closer to equivalence”, and if defendants “ covered the attorneys fees that he incurred through no fault of his own.” By letter dated August 24, 1962, de fendants refused to name an arbitrator or to consider plain tiff’s offer to accept 11823 Charen Lane on the specified conditions. 22. On August 27, 1962, plaintiff’s attorney wrote de fendants’ attorney once more stating that he understood defendants’ position to be (i) that Schwartz would not serve as arbitrator, (ii) that defendants would not desig nate another arbitrator, and (iii) that defendants would not offer any other house. This letter has not been an swered. 23. The lot offered plaintiff (11801 Charen Lane) is not equivalent to Lot 9 in Block 3 (11820 Charen Lane). The lot offered plaintiff is approximately one-third smaller in square footage than Lot 9 in Block 3; it has no natural growth of trees such as those on Lot 9 in Block 3; it is lower in elevation; and it is crowded by adjoining houses whereas Lot 9 in Block 3 is on the outer perimeter with a 8 wide barrier of trees separating it from adjoining open land. 24. Plaintiff has at all times stood ready to arbitrate the equivalence of the lots as provided in the Agreement of January 9, 1962, and defendants have at all times refused to do so. 25. Notwithstanding the repeated requests by plaintiff that the defendants go forward with their Agreement of January 9, 1962, by arbitration and by offering and deliver ing to plaintiff a completed house on Lot 9 in Block 3 or an identical house on an equivalent lot, as provided for by the Agreement of January 9, 1962, defendants have at all times failed and refused to do so. These failures and refusals by the defendants, constitute gross violations of their Agree ment of January 9, 1962 with the plaintiff, on account of which plaintiff is entitled to legal and equitable redress. 26. The refusal of the defendants, as aforesaid, to go forward with their Agreement with the plaintiff, as afore said, was a willful and deliberate disregard by the defend ants of their contractual undertaking. Defendants delib erately flaunted their contractual undertaking and took steps to provide assurance against compliance with its terms. Defendants sold Lot 9 in Block 3 without reserving an identical house on an equivalent lot for plaintiff. De fendant sold other houses at will and without any such reservation. At the last moment, defendants offered plain tiff a lot which was in no sense equivalent to Lot 9 in Block 3 and, recognizing this, refused even to arbitrate the issue of equivalence as they were legally obligated to do. 27. By reason of the aforesaid violations of contract by the defendants, plaintiff has been irreparably injured. Plaintiff has no adequate remedy at law for such injury. W h e r e fo r e , plaintiff p r a y s that this Court take juris diction over this action and award the following several forms of relief to the plaintiff: 1. Affirmative declaratory and injunctive relief in the nature of specific performance, requiring the defendants to coniply with the terms of the Agreement of January 9, 1962. 9 2. Requiring the defendants, by affirmative injunctive relief, to deliver to plaintiff a completed house on Lot 9 in Block 3 of the type and at the price and terms set forth in the house purchase document of October 9, 1961, or an identical house on an equivalent lot in the project of 42 houses built by defendants. 3. Requiring the defendants to pay to the plaintiff liqui dated damages pursuant to paragraph 7 of the Agreement of January 9, 1962, computed at the rate and in the manner therein set forth. 4. Awarding to the plaintiff compensatory damages for breach of contract in the amount of Thirty Thousand ($30,000) Dollars. 5. Prohibiting defendants pendente lite from selling 11823 Charen Lane, Rockville, Maryland. 6. Such other and further relief as the circumstances may warrant. Respectfully submitted, E ug en e M. F ein b h a tt , American Building, Baltimore, Maryland. J o seph L. R a u h , J r ., J o h n S ilabd , 1625 K Street, N.W., Washington 6, D. C. Attorneys for Plaintiff. A ffidavit Comes now Roland E. Barnes and being duly deposed and sworn states as follows: 1. I am the plaintiff in a civil action against A. Sind & Associates and others, which is being filed on my behalf in the United States District Court for the District of Maryland. I have read the complaint signed by my attorneys on my behalf. 2. I affirm the truth of the facts set forth in para graphs 14, 17 and 20 of said complaint on information and belief. 10 3. I affirm the truth of each statement of fact set forth in the remaining paragraphs of the complaint. ( s ) B oland E. B a r n es . Sworn to before me and subscribed in my presence this 25th day of October, 1962. (s) M ary C. A ssay, Notary Public. My commission Expires Dec. 31, 1962 (Seal.) A ffid a v it Comes now Joseph L. Bauh, Jr. and being duly deposed and sworn states as follows: I have read the complaint signed by me as Attorney for Boland E. Barnes in a civil action by Barnes against A. Sind & Associates et al in the United States District Court for the District of Maryland. Each of the statements of fact contained in paragraphs 12, 13, 14, 15, 16, 19, 20, 21 and 22 of said complaint is true and correct. ( s ) J o se ph L. B a u h , J r . Sworn to before me and subscribed in my presence this 25th day of October, 1962, ( s ) M ary C. A ssay, Notary Public. My Commission Expires Dec. 31, 1962 (Seal.) 11 A SPECIAL INTRODUCTORY PRICE ON THE BIGGEST AIR-CONDITIONED 2-STORY COLONIAL IN BETHESDA 4 BEDROOMS ON ONE FLOOR, FIRST-FLOOR FAM ILY ROOM, 2 V2 BATHS, FULL BASEMENT, CARPORT, FIREPLACE, AUTOMATIC WASHER AND DRYER IN CLUDED It is hard to imagine the colonial atmosphere and Georgetown flavor xtf this lovely community without seeing it. I t is hard to describe the • spectacular value, other than to say that eveything listed above, everything you could wish for, is included in the price. Three floors of privacy with 4 bedrooms on one level, a center hall foyer, panelled family room or library on the first floor, full basement, carport, fireplace, 214 baths, automatic laundry center included, air conditioning included- A magnificent home in a new Bethesda community with its own schools, swimming pool, close to golf courses and country clubs Other Introductory Prices * Rethesdan R am bler . . . irulit U niversity House Sp lit Level Surrey Split Loser R am bler . air conditioning a t S22.U50 . includes air conditioning: at '2 includes air conditioning at >2.\2~>0 Westlnghouse dishwasher?, automatic washers, automatic dryers, disposers. rve-W rl ovens, counter ranges and re irise ra ’ors . , . all included m the price. Interiors by J, Lomkurgh„ 9ih <§ f Si, N,W. Builders & Developers: A. SMB & ASSOCIATES Dp - I T C B - a - m X j ______ -L i- 12 Type Loan. HARMONY CORP. T. N. LERNER, President «406 GEORGIA AVENUE, N.W. WASHINGTON 12, 0. C &ecetbeb from ,. (Street Address) __ C (Phone)_(State) _Dollars ( $ - / + . J U L ll____ )a deposit o/__b" «__2___ _ (Cash) fCheck) to be applied as part payment of the purchase of Lot____ —, with improvements thereon known as___ ------------- ________________ ______________ rSHa______________ upon the following terms of sale: / / (1) Price _.y. /%*** (2) Purchaser agrees to payCE.1^^_Tt.x.'+s. A£*«~- *&■■/ **.. cash at the date of conveyance, of which sum this deposit shall be a part. (S) The purchaser is to negotiate, procure and place a first deed of trm j /Q*4***~-*-- / wwk- *■ ‘j-€t & i _ _ _ bearing interest at the rate of___ ___________________ ____ ________ per cent per annum or at the maximum prevailing rate at the time of closing, payable $ / 3 . , .̂, _________ , or in such amount as may be necessitated by virtue of an increase in interest rate as aforesaid, per month, includ ing principal and interest, but not including taxes and insurance, and shall make prompt application therefor, with suchlending agency or institution as shall meet with the approval of seller; the proceeds of such first trust shall be applied towards payment of the aforesaid purchase price. The balance of the purchase price shall be paid by pur chaser to seller in cash at time of settlement. ^ (i ) For the balance of deferred purchase money amounting t o ____________ ______I ____ in Block. Montgomery County, Maryland U.. Dollars ($~„i.Ji. . —Dollars (*_ Dollars ($. purchaser is to execute and deliver a second deed of trust secured on said premises, to be paid in monthly install ments of— ---------------------------------- _•--------------------------------------------------------Dollars ($___ ______ _____ ) K or more, including interest at the rate of— ------------ -------- ---------- per cent per annum, each installment when so paid to be applied, first to the payment of interest on the amount of principal remaining unpaid and the balance thereof credited to principal____ _________________________________ Trustees in all deeds of trust are to be named by the parties secured thereby. (5) The seller agrees to complete upon the aforesaid premises a dwelling substantially similar, as to workmanship, material, type of construction and finish, to the interior and exterior of seller’s model house known as Lot____ _____ , Block _ _ _ , which model house has been inspected by the purchaser. The seller reserves the right to make such changes or substitutions in the con struction as may be required, authorized or approved by the lending institution, by F.H.A., V.A. or by other Governmental Agencies having jurisdiction thereof. Lot grades, lot area, and locations of walks and driveways, may not necessarily conform to those of the aforesaid model house. \ (?) The property is sold free of encumbrance, except as aforesaid; title is to be good of record, subject, however, to covenants, conditions and restrictions of record, otherwise the deposit is to be returned and sale declared off at the option of the purchaser! °n that thuey may readiIy b? remedied by legal action, but the seller and Agent are hereby expressly released from all liability for damages by reason of any defect m the title. In ease legal steps are necessary to perfect the title, such action must be taken promptly by and at the seller’s expense, whereupon the time herein specified for full settlement by the purchaser will thereby be extended for the period necessary for such action. 3 on the deed --------- ------ ---------- ° u w u , «uu w pay xui r eucrai revenue stamps (8) Seller agrees to give possession at time of settlement. If seller shall fail so to do and occupies said property, seller shall become and be thereafter a tenant at sufferance of the purchaser, and hereby expressly waives all notice to quit provided by law. • ̂ ,(-9) ?ei lef , assum?s the ri!* of loa5 or damage to said property by fire or other casualty until the executed deed of conveyance is delivered to the purchaser or is recorded for him by the Title Company making the settlement. * (1°) All notices of violations of County or State orders or requirements noted or issued by Montgomery County or the State of Maryland or prosecutions m any of the courts of the State of Maryland, or elsewhere, on account thereof against or affecting the property at the date of settlement of this contract shall be complied with by the seller and the property conveyed free thereof, with the exception of the means of egress regulations. This provision shall survive the delivery of the deed hereunder. Settlement is to be made at the office of the Agent or at the Title Company searching the title, and deposit with the Agent Of HL™LCaŜ paymfent.?S aforesaid> tbe deed of conveyance and such other papers as are required by the tennsof this contract shall be deemed and construed as a good and sufficient tender of nerformance of the terms herenf (1f ) j It is agreed that the furniture and furnishings contained in any model house are for exhibition purposes only and are not included in the purchase unless otherwise expressly provided herein. purposes oniy ana are , J 16> Tb« costs. incident to the installation of house connection to sewers, curb and gutter, sidewalks and streets shalfbe borne by the seller if required to be installed prior to settlement of this contract by the appropriate governmental authorities,' but this shall not be construed to relieve purchaser of his liability to assume and pay the annual benefit charges of the Washington Suburban Sanitary Commission as set out In paragranh 19 hew 16 , , . , , "«=»--------u m u v w *»/ v**v u v u v < t w* m » * v a u «o w u i u u b w u w / o u v u t v t t u u t g i» g v .u v ; Vfc «WVtW»V*W« " the lender shall thereafter refuse to consummate the loan by reason of non-performance of any conditions of such commitment within tne period of tune prescribed for such performance under the provisions of the commitment, or if said Lender refuses to consummate and make the loan for any other reason either before or after commitment is issued, the seller shall have the right at its option to cancel and terminate this agreement and refund to the purchaser the deposit hereinbefore mentioned; or, at the seller’s option, the purchaser shall have the privilege of obtaining the first trust loan from other sources, if the lending agency or lending institution named by seller refuses to make such loan. In no event shall seller have any obligations or liabilities to purchaser hereunder on ac count of the Lender s refusal to make such loan, for any reason whatsoever, other than the obligation of refunding to purchaser the deposit made by him hereunder as aforesaid. Seller shall not be liable for damages whatsoever by reason of delays in completion of said improvements. . CW .^ke entire deposit, whether paid to agent or seller, shall be held by seller until settlement hereunder is made or until the deposit is forfeited. In the event of the forfeiture of the deposit, the Agent shall receive from the seller one half thereof as a com pensation for his services. the property is serviced by the Washington Suburban Sanitary Commission, annual benefit charges of said Commission are to be adjusted to date of transfer and assumed thereafter by purchaser. (20) Seller agrees to pay to HARMONY CORP., Agent, a commission amounting to $_________________ , the amount of which said commission being hereby assigned to the Agent by the seller out of the proceeds of sale. The party through whom settlement nereunder is made is hereby authorized and directed to make deduction of the aforesaid commission from the proceeds of the sale and to make payment thereof to said Agent. ® _ .P“rc^a,!er ^as the option of cancelling this contract and receiving back his deposit in the event construction is not completed and title delivered withm approximately 365 days from the date of acceptance hereof by the seller, except for delay caused by perfection of title as described in paragraph 6 hereof, or except when a delay is occasioned by circumstances beyond the control of the seller, or as soon thereafter as a report on the title can be secured, if promptly ordered. i « 2̂2 ̂ i P'-H.A. INSURED LOANS. This provision only applies when the Purchaser is buying with an F.H.A. Insured Loan. It is expressly agreed that, notwithstanding any other provisions of this contract, the Purchaser shall not be obligated to complete xne purchase of the property described herein or to incur any penalty for forfeiture of earnest money deposits or otherwise unless tne seller has delivered to the Purchaser a written statement issued by the Federal Housing Commissioner setting forth the ap- praised value of the property for mortgage insurance purposes of not less than $___ _______________ _____, which statement the seller hereby agrees to deliver to the Purchaser promptly after such appraised value statement is made available to the Seller. , . . ^ e Purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the appraised valuation made by the Federal Housing Commissioner. (23) VETERANS ADMINISTRATION GUARANTEED LOAN. In the event that the Purchaser is a Veteran and is using a Veterans Administration Guaranteed Loan; it is understood that this contract is contingent on the approval of the property and the Purchaser by the Veterans Administration and the lending institution. If the aforesaid approval is not obtained it is expressly agreed that Purchaser shall be refunded his deposit. I?.,the eye?t the property is completed any time within the time specified in paragraph 21 hereof, the purchaser agrees to make full settlement for this property within fourteen (14) days after the mailing of a notice from the seller or the agent to the pur- . purchaser shall fail to make full settlement in accordance with the terms hereof, the deposit herein provided for may e ‘tfth e seller, in which event, the purchaser shall be relieved from further liability hereunder, or, without forfeiting the deposit, the seller may avail itself of any legal or equitable rights or remedies which it ipay have under this contract. The prlnc?P?̂ s *0 this contract mutually agree that it shall be binding upon them, their and each of their respective a fo r e s a ,^ ^ r«{,fnm,If1SKrat0rS’ sJ1“ ess0.rs a«d assigns; that the provisions hereof shall survive the execution and delivery of the deed «?difha 1 Iiot mf FP d tbeleln! that this contract contains the final and entire agreement between the parties hereto and tafned y h U * b® b°Und by any terms' conditions, statements, warranties or representations, oral or written, not herein’ con- seller! *S dl8tlnctly underst°od and agreed that this contract cannot be assigned in any event, without the written consent of the Purchaser agrees to pay the loan placement fee at time of settlement for the aforesaid loan. Executed in ____ ____ copies. HARMONY CORP. to b7our t o n t r £ rSi9ned’ mUfy’ aCCept to the,above memorandum of sale and acknowledge it Parchaaer Purchaser Property is to be conveyed in the name of 15 E x h ib it “ C ” A g r e e m e n t W h erea s on October 9, 1961, Roland E. Barnes (here inafter referred to as Barnes) signed three copies of a document involving the “ purchase of Lot 9 in Block 3, Model G-eorgetowne, with improvements thereon known as Oharen Lane, Montgomery County, Maryland . . to be constructed by Abraham S. Sind, Israel Cohen and A. Sind & Associates (hereinafter referred to as Sellers and an employee of Harmony Corp. signed three copies of the same document (hereinafter referred to as the house pur chase document of October 9), W hereas there is a dispute between Barnes and Sellers as to whether the house purchase document of October 9 is legally binding* upon Sellers, Now, T h e r e fo r e , in full settlement of the claims of both parties and in consideration of Barnes hereby releasing all claims against Sellers under the house purchase document of October 9 or otherwise, it is agreed between Barnes and Sellers this 9th day of January, 1962, as follows: 1. Sellers agree to and will, on or before March 15, 1962, make available to Barnes a house substantially equivalent to the one covered by the house purchase document of October 9, with price and terms no less favorable to Barnes than those in the house purchase document of October 9. 2. The term “ substantially equivalent” in paragraph 1 of this Agreement, shall mean substantially equivalent in value, in size and number of rooms, in proximity to the Rockville schools and community and in neighborhood facilities and surroundings. 3. The term “ make available” in paragraph 1 of this Agreement, shall mean that Sellers shall find a seller ready, willing and able to sign a contract with Barnes for the sale of a substantially equivalent house to Barnes. 4. Should the house made available to Barnes pursuant to paragraph 1 of this Agreement cost more than $25,990 (the price in the house purchase document of October 9). 16 Sellers shall provide Barnes with the difference in purchase price. 5. If Sellers make a house available to Barnes under paragraph 1 and Barnes rejects the same on the ground it is: not substantially equivalent to the one covered by the house purchase document of October 9, this question of substantial equivalence may immediately be referred by either party to Joseph L. Rauh, Jr. and Morris D. Schwartz, attorneys for the respective parties, as arbitrators, and their decision as to whether the offered house is in fact substantially equivalent to the one covered by the house purchase document of October 9 shall be final and binding upon both parties to this Agreement. If Rauh and Schwartz are unable to agree, they shall name a third arbitrator; and if Rauh and Schwartz are unable to agree on a third arbitrator, Rauh shall select the Chief Judge of any court in this area to name the third arbitrator; and in either event the arbitrators’ decision as to whether the offered house is in fact substantially equivalent to the one covered by the house purchase document of October 9 shall be final and binding upon both parties to this Agree ment. Sellers agree to pay for arbitrators’ services. 6. If Sellers fail to make available to Barnes on or be fore March 15, 1962, a substantially equivalent house pur suant to paragraph 1 of this Agreement, than and in that event Sellers shall become immediately obligated to Barnes to deliver to Barnes a completed house on Lot 9 in Block 3 of the type and at the price and terms set forth in the house purchase document of October 9, except that Sellers shall have the option to make delivery: thereof at any time between March 15, 1962 and August 31, 1962 and except that Sellers shall have the further option to substitute for the completed house on Lot 9 in Block 3 as provided in the house purchase document of October 9, and to make delivery to Barnes prior to August 31, 1962 of, an identical house on an equivalent lot in the project of 42 houses being built by Sellers of which the house covered by the house purchase document of October 9 is one the 17 question whether the lot is in fact equivalent to be arbi trable under paragraph 5 of this Agreement. 7. If Sellers do not perform the undertaking in either paragraph 1 or paragraph 6 of this Agreement by the times therein prescribed, then, in view of the damage which will be suffered by Barnes and his family in not obtaining by March 15, 1962 the house covered by the house purchase document of October 9' and in view of the further damage that will be suffered by Barnes and his family in not obtain ing that house or an identical house or a substantially equiv alent house prior to the opening of the 1962-1963 school year, Sellers jointly and severally agree to pay Barnes as liquidated damages for violation of this Agreement $100 a day for each day after August 31, 1962 that the completed house on Lot 9 in Block 3 or an identical house on an equivalent lot as prescribed in paragraph 6 is not delivered to Barnes: Provided, however, that liquidated damages under this Agreement shall not exceed $15,000. In W it n e ss W h er eo f we have this 9th day of January, 1962 set our hands and seal. R oland E. B a rn es , A. S in d & A ssociates, A braham S . S in d , I srael C o h e n . A ffid a v it Comes now Doris Foster and being duly deposed and sworn states as follows: 1. I am a qualified real estate agent authorized to engage in the real estate business in the State of Maryland and Montgomery County, Maryland. 2. On August 1, 1962, pursuant to a request from Joseph L. Rauh, Jr., I went to the Georgetowne Hill area in Montgomery County to examine Lot 9 in Block 3 in said area (11820 Charen Lane) as well as 18 Lot 35 in Block 2 (11801 Charen Lane). Pursuant to my careful study of these two properties, I formed the conclusion, which I hereby affirm, that these two properties are in no sense equivalent because the last- mentioned property is considerably smaller in size, less attractive in shape, less well located and without the beautifying trees on Lot 9 in Block 3. Sworn to before me and subscribed in my presence this 25th day of October, 1962. (s ) M aky C. A ssay, Notary Public. My commission expires December 31, 1962. (Seal.) 19 [Tr. 82] Q. Mr. Barnes, could you tell us again the total distance you have been traveling from your home to your place of occupation during the week, in this last school year? [Tr. 83] A. The distance from my house to the school is approximately twenty-two miles. Q. And, I take it, you travel that twice a day, to the school and back to your home; am I correct? A. Yes, so that the round trip would be at least forty- four miles. Q. And approximately how long does it take you to travel those twenty-two miles; how do you travel? A. Depending upon the traffic, the average time is forty to fifty minutes. Q. And how do you travel that distance? A. I drive. The Court: Each way? The Witness: Each way; yes, sir. I drive to and from. Q. How does your wife travel to school and back? A. She also drives to and from school. The Court: In the same car or a different one? The Witness: In a different car, sir; usually, she has to transport the children as she goes and comes. Q. What is the mileage she has to travel from her house to the place of her occupation? A. The distance is approximately seventeen miles. The Court: I thought you said sixteen the last time. Maybe we had better get this straight. What is it? [Tr. 84] At some point, I thought sixteen, and six with the difference, something like that. Is it seventeen or sixteen? The Witness: Really, it probably varies with the route which is taken, sir. Q. And would you state what your annual income was this year, as the principal of the school. A. My income was $11,250. The Court: You say $11,350? The Witness: No; 250. 20 Q. And that of your wife ? A. I am not, certain of the very exact figure; I think it is $7990. The Court: Well she could probably----- Mr. Pierson: What was that amount, again! The Witness: It was $7990. Q. Now, are you required, in connection with your duties, to travel to the school and back, during the school year, more than once a day, or on week-end days; or is that not something which occurs----- A. This occurs frequently; I must make a trip back out in the evening or on week ends. Regularly, there are PTA meetings, PTA Executive Committee meetings, a Science Advisory Committee on which I serve, Principals Associa tion regular meetings and Executive Committee meetings, various affairs which take place in the school from time to time, [Tr. 85] which I must make a second trip back out to the school for. The Court: Did you say what it averaged? The Witness: I would say it averages about twice a week I need to return, other than the regular school days. The Court: So it make about seven times a week. The Witness: Seven times a week. Now, do you need to make any additional child-care expense because of the commuting situation? A. Yes; we do. There is a child-care expense for the person who looks after the younger girl from the time she leaves school until she can be picked up by my wife at approximately 4 :15 or so. Q. And who does that child care; who is that person? A. A person who lives in Rockville; her name is Mrs. Ambush. Q. And what is it that you pay her? A. At the rate of $5 a week for the past year. Q. Are there occasions when your wife must return to school an additional time after school hours, or during the week ends, in connection with her professional duties? 21 A. There are many occasions; I would say at least an average of once a week she must return also. Q. Are there occasions when, in connection with school functions taking place in the late afternoon or evening, extracurricular or semicurricular functions, it is necessary [Tr. 86] to take your children back for a second time during the day! A. There have been many occasions; I do not know of an average except that, for the past four weeks, we have needed to return at least four times to their schools for activities in which they need to participate. Q. Is there a method of transportation from your house to the Rockville area, other than by your private carl If so, what is it; how convenient is that? A. You could get to Rockville from my house by taking three different buses. It probably would take about two hours or more to make the trip, provided you could get to the points at the scheduled times, and make your com nections right away. It would take at least two hours. Q. Have you ever used that method of transportation? A. I have never used i t ; no. Q. Have the family, as far as you know? A. My older daughter has used that method of returning to school on a few occasions when it was impossible for either my wife or me to take her out to a school activity or a school-sponsored activity. Q. When you take one of your children to one of their evening school activities, is it possible to leave them there and have them transport themselves back; or is it neces sary for one of you to stay with them during the activity and take them back in the late evening? ! Tr. 87 | A. We need to stay with them in order to return them. I would not allow a sixteen-year-old to return alone on the bus at that time of night, any time after dark. Q. Are there functions like PTA and the other profes sional functions you mentioned, which you would have attended this year if you had been living in the locality, but which the hour’s drive each way precluded you from doing during nonworking hours? Mr. Pierson: Objection! It seems to me that is purely speculative. The Court: Well, it is bound to be uncertain. I do not think he can say the exact number of times. But I think, unless you would prefer him to say them rather than to say that, on occasion, he has been unable to do it, it would necessarily follow that he would spend additional time in traveling; there are certain things he is not going to be able to do, on account of the fact that there is no travel time. What they are going to be, whether they are PTA. meetings or movies or what, this is something you cannot do. It is just that it inherently follows that the time and energy you spend in one thing you do not have to spend on something else. Mr. Pierson: My understanding of the question was, Tour Honor, whether there were certain trips to the school he did not make, because of the distances involved, [Tr. 88] or whether he might not have made them. It seems to me that is pure speculation on his part, not to mention the fact that the question is leading. The Court: Yes. Well, I will sustain it for the last reason, as a clearer one. I think it is rather close. He would have had to have driven the eleven miles, anyway. From his new home, if he had had it, he would have had to drive eleven miles to school; this is twenty-two miles. It is eleven additional miles. I think it is probably a jury question. I will sustain the objection as an inference of what a person would do. Q. Well, has the necessity of driving back in the evening, this forty- or fifty-minute drive you mentioned additionally, interfered in any way with your functioning as a school principal in those semicurricular or evening activities a school principal is invited to attend? Mr. Pierson: Objection, too, Your Honor. I think it is virtually the same question and, again, is misleading. The Court: Well, you can ask him whether it has; then the question would be to what extent, if any, of the addi tional eleven miles you would have to drive prevented you from attending duties for which you are responsible, or other activities you would like to attend, either or both or neither. Mr. Pierson: With all deference to the Court’s [Tr. 89] phrasing of the question, I will renew my exception. The Court: I will note the exception; I do not think it is leading. Mr. Pierson: If he does not understand what is wanted by now, he never will. A. There have been many occasions when I just did not feel like returning, because of the wear and tear of the normal trip. I have even missed some for which I should be required to attend, because I just was not able physi cally to make the second trip on the same day. # # * # * # * [Tr. 181] F rances J. B a rn es , a witness for the Plaintiff, was called and, having been first duly sworn, was exam ined, and testified as follows: Direct examination. By Mr. Silard: Q. What is your home address, Mrs. Barnes! [Tr. 182] A. It is 310 Allison Street, N.W.. Washington, D. C. Q. And what is your relationship to the Plaintiff in this case? A. I am his wife. Q. Mrs. Barnes, when were you first employed in the Montgomery County School System, and in what capacity? A. I was first employed in August of 1960, as a special- education teacher at Peary High School. Q. And how long did you remain so employed? A. I remained employed there until (I think it was) the 16th of September, when I resigned. Q. And what was the cause of your resignation? A. The cause was that we were having difficulty making- arrangements for getting the children back and forth, get ting them taken care of at the end of the school day. We 24 trigd a number of things; but it was just impossible to work them out, because be was not in Rockville at the time. This school is located down in the Aspen Hill section of Montgomery County; there were no families there whom I could get to take care of the youngsters in the after noons. It was just too much; so we decided that I would just have to give it up. Q. Now, when did you nest become employed in the Montgomery County School System? A. On May 1, 1961. [Tr. 183] Q. And how was it that you became reemployed there? A. Well, I was contacted by a member of the Board of Education, asking that I please reconsider and see if there was not something which could be worked out so that I could come back. At this time, they were very generous in the concessions . they gave me. I told them I could not come back full-time , at this time, because it still was the matter of having the youngsters looked after. So they made arrangements that I would not have to get there before ten o’clock in the morning, which meant that I could see that the children were off to school; and that I would only have to work until two o’clock in the afternoon, so that I could be home when they got in from school. Q. Now, did you remain employed in that capacity since that time? The Court: Was that back at Peary High School? The Witness: No; that was not back at Peary High School. I was at the Board of Education in Rockville: Q. Is that the capacity in which you have remained employed; or has it changed in some way? A. No ; now I am a teacher-consultant in visual educa tion for visually handicapped children. Q. At what locations do you actually do that work in the day? [Tr* 184] A. I work out of the Monroe Center (they call i t ) ; that is the old Board of Education building in Rock ville. .< 25 Q. At what locations do you actually work during- the day? A. Well, I go to different schools. I report to the Board in the morning; then I travel about the county, going to different schools. I have about fifteen or so schools which I am in and out of during the-— — The Court: Beginning from the time you went back this year, you have been full-time, then. A. No ; since August 1961, the beginning of the 1961- 1962 school year, I have been full-time. Q. And what arrangements, since August or September of 1961, have you made with respect to taking your children to school in the morning, returning them in the afternoon, then arrangements which may be required in between those hours ? A. Well, I leave early and drop my high-school young ster at Richard Montgomery High School, which is maybe three blocks from my base office; then I take the younger child over to a Mrs. Ambush, who lives about four or five block’s from my youngster’s elementary school. Q. What does she do with Mrs. Ambush? A. She stays there until it is time for her to go to school. Then, at the end of the school day, she returns f Tr. 185] there until I can pick her up after four. Q. Are you required to pay Mrs. Ambush anything for this ; service ? A. Yes; I have to pay her. Q. And what is it you have been paying her this year for that service? Q. Well, since the youngster had music on Wednesday afternoons, there were only four days she was there most of the time; I paid her $5 a week. Q. That is during this past school year that you. have been paying that. A . Yes; since she. has been there. . It is. two years now that this arrangement has been----- Q. And when do you pick up your children at the close of your work day; what time in the day is that? . A. Well, usually it is four-fifteen or four-twenty. Q. And do you then take them back home! A. I take them to Washington; yes. Q. And by what means do you take them! A. I take them by car. We have to have two cars, be cause of the working situation. Q. And, when you take- your children back home at four- fifteen (or thereabout) in the day, have you then completed all the duties and meetings, professional activities, which are expected of you in your work situation! [Tr. 186] A. No; there are professional meetings we are expected to attend. Then there are other meetings within the vision unit in which I work; we have extra meetings. Q. And when are those extra meetings; at what hours! A. Well, usually, they are seven-thirty, eight o’clock. So it means I go in, swallow down something to eat, freshen up, and start right back out again. Q. Are there any of those meetings in the afternoon rather than in the evening! A. Well, again, whenever the situation demands—I mean, they know: I have to pick up my children and get them back. So often, when possible, in the small pro fessional meetings (like for the unit), they will arrange so that the meeting can be later, so that I can get back out there. The Court: Where is Allison Street, where you live! The Witness: Allison Street is in the Petworth Section of Washington, D. C. It would be down about where the 4600 or 4700 blocks would be, on those streets which run north and south. The Court: Punning near what north-south street! The Witness: It is off New Hampshire Avenue, between Third and Fourth. The Court: So what do you do; go out New Hampshire Avenue! The Witness: I go out New Hampshire Avenue to [Tr. 187] Missouri; generally, in the morning, I go out Missouri to Sixteenth, up Sixteenth into Georgia Avenue, out Veirs Mill. In the afternoon, I come back a different way to break the monotony. 27 Q. What is the distance from your home to your place of work in Rockville? The Court: Well, do you have to prove everything twice? I do not see any point, if her testimony is the same as her husband’s on distance. Mr. Silard: Well, I am not sure this other thing is—— Q. What is the distance from the location where you work to the place where this Lot 9 in Block 3 is located? A. Approximately five miles. Q. Now, are there activities to which your children are invited after school hours, in connection with the school curriculum, or in which they participate? A. Yes; I mean, there are a number of things : Of' course, the band concerts, the symphony concerts, the different recitals. Q. Well, are your children active in any of those things themselves? A. Well, they are rather inactive, because of this matter of having to g*et back out there. Q. But what organizations do either of your children belong to out there, extra-curricular organizations? [Tr. 188] The little girl is a member of the school band. She would like to have been on the school patrol; she was asked to be. But she could not get there in time; we could not be certain she would be there in time to be able to. The Court: In the morning, you mean. The Witness: Yes. The Court: I thought you said you left her at this lady’s house in the morning, because it was too early for her to go to school. I gathered that was the reason. The Witness: Well, I mean this is about eight-thirty. So they are not supposed to be at school until, I think it is, ten minutes of nine. So it is really not so early. The Court: Well, when does the patrol go on duty? A. They go somewhere between eight-thirty and nine, I guess. But I mean we are not certain she can get there on time; I try to. 28 Q. And this is the little girl you say is in the band. A. This is the little girl. Another thing: They wanted her to be chief assistant librarian; but, again, the teacher asked: ‘‘Are you going to be in it next year!” because, again, it is the matter of the early-morning time or the afternoon time. Mr. Pierson: Your Honor, I think we are going hope lessly afield. We are now on the social life of the [Tr. 189] children, I think. The Court: I do not see how this could be recoverable damages in this case. Q. What activities is your other child in! Mr. Pierson: I will object, Your Honor. The Court: Well, I will take anything in the record they want to put in ; but I am not going to pay attention to it, because I think it is immaterial. If they wish to put it in the record, I will take it, subject to exception. You can move to strike. Q. What activities is your other child in (school activi ties) ! Well, she is in the glee club, the dramatic club at her school. Q. Well, have your two children been able to establish----- Mr. Pierson: Excuse me, Mr. Silard. I understand we have----- The Court: Strike it out. Mr. Silard: Your Honor, I would like to proffer that these are elements of----- The Court: You go ahead. I said you can proffer any thing you want, subject to exception. I will strike it out if I think it is immaterial. Mr. Pierson rose again; I struck that out. Mr. Pierson: I can do it either way; I can object [Tr. 190] or move to strike it out. 29 The Court: I understand the whole line is coming up at the end, subject to exception. At the end of the line, you can move to strike. Mr. Pierson: All right. Q. Have your children been able to participate fully in . the glee club, the band, and the drama society which you mentioned they belong to ; if they have not been able to participate fully, could you explain why. A. Well, the same reason is that the distance is the matter of going into town, then having to come back, after having made the trip out and back again. Q. Have you been able to make arrangements whereby the children can visit the houses of their friends after school hours in the afternoon and evening, on a regular basis ? A. No. The Court: What do you mean, “ on a regular basis” ? Mr. Silard: Well----- The Witness: There are no arrangements for them to stay with other people, other than Mrs. Ambush. The Court: Unreasonableness can wear down sympathy. The Witness: This is a paying situation. Q. Now, Mrs. Barnes, I direct your attention to July of 1962; I ask----- Air. Pierson: Just a minute, Mr. Silard. I will [Tr. 191] move to strike out all----- The Court: Strike it out. Mr. Pierson: That is all of the witness’ testimony per taining to the activities of her children. The Court: Except those which have involved the ex pense of providing baby-sitting care, or what have you. Mr. Silard: Your Honor, may I make a proffer of the grounds, why I believe this evidence to be relevant, before you make your ruling. The Court: All right. 30 Mr. Silard: There is a liquidated-damages clause in the contract. We believe a critical question on the reason ableness of the liquidated-damage clause is whether there are elements of damage not easily ascertainable, hut which warrant fair appraisal by the parties, of what the damage on breach might be. We believe we have proof; we will further prove knowledge by the Defendants of this special form of damage. The Court: Is it special damage to the children or to him? Mr. Silard: I believe it is special damage to him, Your Honor. I would certainly argue that it is, and that it was so contemplated by the parties. It seems to us, Your Honor, we would agree precisely, because we agree on the impossibility of the monetary [Tr. 192] assessment of these elements; we put them in the record because we believe they are the kind we can show were in contemplation in the liquidated-damages clause, and were the principal grounds why, unlike other situations, we had a situation here known to the Defendants, where there were particular damages to the Plaintiff and his family which warranted that kind of clause. We believe this has been put in issue by the Defendants, Your Honor, who challenge the validity of the liquidated- damage clause. We believe we ought to be allowed to prove the kind of special damage appraisable. The Court: Well, you have not proven that these partic ular matters were brought to the attention of the Defend ants. I think, insofar as it has validity, it is something which anyone would know necessarily followed. I mean, you can argue the point on something which is uncertain. But I am sure that, if you offer to prove that these specific items of damage were brought to the Defeiidants’ attention at the time of these discussions, all right; otherwise, I think you have the general argument as to the inconvenience to the family as a whole being something which must have been known. 31 Mr. Silard: Well, Your Honor, we have already had testimony concerning the meeting of November 28, at which the Defendants were told of the burden upon the family, of [Tr. 193] this double life. The Court I know; but you are talking about some thing in advance. Whatever was brought to their attention is something which might be considered as foreseeable damage. This is not a tort case; you are not suing them in tort. You are asking damages for breach of contract. Breach of contract involves, as I understand it, some sort of foreseeable damages. The specific damages----- they have not been able to make arrangements for the children to visit friends on a regular schedule, or what ever is the question you asked—seems to me a matter which has not been proven, that it was brought to the attention of the Defendants at the time. Mr. Silard: I may be making a mistake, Your Honor; but I had thought, if we proved (as we have in part, and as the agreement itself states) that the particular cause of concern was the double life the family was leading, we would be able to prove it was reasonable for us to assess the liquidated damages. The Court: Well, you are proving two different things; there are two different elements you are talking about: One is, if you are justifying your liquidated damages, it can only be on matters which have been brought to their attention, not on something which happened after ward. [Tr. 194] If you are proving actual damages, it must be actual damages to the Plaintiff, not to his wife or children. Mr. Silard: Well, Your Honor, we have three elements of proof that these types of losses were made known to the Defendants: First, in a letter now in evidence, which was sent to them on October 27, 1961; Secondly, at the meeting of November 28; Thirdly, in the settlement contract itself, where the grounds were recited. 32 The Court: All right, they are all things which hap pened long before August 1962; she is telling me what happened since. What has happened since August could not have been brought to his attention before then. Mr. Silard: Well, the same situation prevailed at the very time. The Court: Whatever was brought to his attention you may prove, as part of the justification you claim for liqui dated damages. But what has happened since August 1962 cannot have been brought to his attention in June, specifi cally. Now, what was brought to their attention generally by the letters may be and will be considered. Mr. Silard: Well, in that case, Your Honor, since I was asking questions about the 1962-1963 school year, [Tr. 195] Your Honor is quite correct that this is a time subsequent. May I be permitted to ask the same questions as to the 1961-1962 school year, contemporaneous with the— The Court: No; I do not care what actually happened, because the 1961-1962 school year is before the claim for damages under the contract could arise. The question there is what was brought to the attention of the Defend ants which might have been contemplated by them, either in preparing the agreement or at the time they allegedly broke it. Now, it is what you communicate to them, not what the facts were. * * * * * * * I n t h e U n ited S ta tes D istrict C ourt for t h e D istrict of M aryland Civil Action No. 14,155 R oland E. B arn es , Plaintiff, v. A . S in d & A ssociates, e t al., Defendants. P l a in t if f ’s A n sw ers to Q u estio n s N ot A n sw ered at D e po sitio n on N ovember 29, 1962 Comes now the plaintiff in answer to the questions pro pounded on November 29, 1962. The questions were not then answered because of proper objection by counsel to their scope and purpose under the discovery rules. Never theless, to obviate unnecessary delay and litigation, plain tiff now supplies his sworn responses to the questions earlier propounded: 1. Questions on page 51. I have never asked for the return of the $1000 deposit made as an earnest of my performance of the agreement of January 9, 1962. I wish the deposit to be held by defendants until the case is decided and to be applied at that time to the purchase of a house from defendants if the decision of the Court affords me that opportunity. 2. Questions on page 50. I can state, itemize and support with evidence a part of the damages suffered by me because of the defendants’ breach of contract. Such damages are based not only upon the additional travel expenses and loss of fair rental value, but they include also damages from my inability to secure anywhere in the Rockville area a new home in a modern development. As Mr. Sind himself has testified on depo sition, no such housing is now available to Negroes in the Rockville area. My losses thus include the monetary and other damages resulting from my inability to live in the area where I and my wife are employed and my children attend school. I understand that the difficulty of determining exactly the monetary value of my damage was the reason that the 34 January 9, 1962 settlement agreement included a liquidated damage clause, upon which I am claiming relief in this action. I can, however, approximate the value per day of four of the eight elements of damage which are listed below: i. Fair rental value of property defendants have refused to convey. $ 7.00 ii. Car, fuel and depreciation at 7fS a mile: (a) my travel (additional 26 miles over that from defendants’ development). 1.82 (b) my wife and children (additional 34 miles over that from defendants’ development). 2.38 (above daily figure for 5 days a week is supplemented by an average of more than two extra trips a week to the school area in connection with school activities) iii. Additional commuting time for me and my wife (1 hour per day extra travel time for each of us com puted at our hourly wage scales). 9.00 iv. Payments for child care after school hours before transportation available back to District of Columbia $20.20 $ 1.00 Total per day of exactly assessible items: (approximately $3,000 since August 31, 1962) v. Legal expenses, costs, attorneys fees, etc. for litigation of breach of contract. vi. Curtailed opportunity to know and associate outside school hours with my 14 co-workers all but one of whom live in Montgomery County. Vii. Loss of opportunity for my maximum professional per formance as school principal, and in my wife’s per formance as school teacher, which require informal knowledge and relationships with children and parents of the school community not obtainable by those residing elsewhere. viii. Inability of my children to associate with school mates on more than sporadic basis after school hours, and consequent curtailment of their opportunity to de velop significant fellowships. $21.20 Not presently computable Not exactly computable Not exactly computable Not exactly computable R o la n d E. B a r n e s . Sworn to before me and subscribed in my presence this 16th day of January, 1963. Notary Public. My Commission Expires :— In t h e U n it e d S tates D istrict C ourt for t h e D istrict of M aryland Civil No. 14155 R oland E. B a rn es , v. A braham S. S in d and I srael C o h e n , P artn ers , T rading as A. S in d & A ssociates, and A braham S. S in d and I srael C o h e n , I ndiv id u a lly . Filed: November 12, 1963 Joseph L. Rauh, Jr. and John Silard, of Washington, D.C., and Eugene M. Feinblatt and Donald N. Rothman, of Baltimore, Maryland, for plaintiff. Morris D. Schwartz, of Washington, D.C., and Edward Pierson, of Baltimore, Maryland, for defendants. T h o m s e n , Chief Judge Plaintiff seeks specific performance of an agreement with defendants dated January 9, 1962, and liquidated damages for delay in performing, or, in the alternative, compensatory damages. Each side claims that the other entered into the agree ment in bad faith, and has unreasonably refused to per form or accept performance thereof. Defendant contends that the agreement is too vague to be specifically enforced, and that plaintiff failed to join as a party defendant the wife of Abraham S. Sind, who holds record title to the real property which plaintiff seeks to acquire by decree herein. Plaintiff, a Negro, is and has been since May 1961 the principal of a school located about five miles from Rock ville, in Montgomery County. His wife is employed by the County Board of Education in Rockville. At all ma terial times they have lived at 310 Allison Street, N.W., Washington, D.C., about 16 miles from Rockville and about 22 miles from the school. 36 Ilie complaint, as amended at the beginning of the trial, names as defendants Abraham S. Sind, Israel Cohen and Abraham S. Sind and Israel Cohen, partners, trading as A. Sind & Associates. The individual defendants, Sind and Cohen, are asso ciated in several business ventures, including the develop ment of Regency Estates, the 189-acre tract involved in this case, which is located about 5 miles south of Rock ville. They are interested in a number of corporations which build houses and do office work for other companies. The name A. Sind & Associates has been used by Sind and Cohen, alone or in association with their wives or in asso ciation with others, to designate various partnerships and joint ventures connected with the developmnt of Regency Estates. With money supplied by himself and one or more of his associates, Sind, as leader of the enterprise, purchased the 189-acre tract. It was the purpose of defendants and their associates to develop the 189 acres (tract) in a series of subdivisions, the first of which appears on the plat offered in evidence as PX 6. It contains 67 lots, which vary in size from about 9,000 sq. ft. to about 15,000 or 16,000 sq, ft., but are intended to be of approximately equal value when grading, drainage, trees, etc., are considered. Sind took legal title to the entire tract in his own name although others had a beneficial interest in it. Sind and his wife, Judy Sind, conveyed eight of the lots in the subdivision to Palro Homes, Inc., a few additional lots to other builders, and one or two lots to individuals, usually with the under standing that Sind and Cohen or one of their corporations would build the houses on the lots. Sometime before October 1961 one of the groups trading as A. Sind & Associates built four model homes near the entrance to the subdivision; one was a two-story house known as the Georgetowne type. Shortly thereafter, 22 Georgetowne type houses were built on lots in the sub division, most of them on land to which title had been retained in the name of Abraham S. Sind. Sind and his wife entered into a sales contract with Harmony Corporation, under which Harmony was author ized to act as sales agent and to offer for sale 100 homes, including the 48 houses being buillt by Sind and Cohen and their corporations in the subdivision. Pursuant to that contract, Harmony caused to be published in the Washington Post an advertisement offering* the houses for sale, calling the development Gteorgetowne Hill, and naming A. Sind & Associates as builders and developers. The advertisement gave the price of the Georgetowne type house, which was depicted in the advertisement. In May 1961 plaintiff and his wife decided to buy a home in the Rockville area. Attracted by the advertisement in the Washington Post, plaintiff visited Harmony’s office in one of the model houses and was shown several lots in the subdivision. Among others, he was shown lot 9 in block 3, on which construction of a Georgetowne type house had just begun. It was one of the largest lots in the develop ment, with a stand of trees along the property line in the rear, giving promise of some privacy. The lot had the disadvantage of being the conduit for storm water drain age from neighboring lots. On the same day, October 9, 1961, plaintiff agreed to purchase that house and lot for $25,990, made a deposit of $200, together with his note for $800 payable in about ten days, and signed a memorandum of sale which was also signed “ Harmony Corporation, by H. Glenn” . The name of the seller did not appear on this document, and the place where the seller would ordinarily sign “ ratify ing, accepting and agreeing to the above memorandum of sale” was never completed or signed by anyone. On October 10, without prior consultation with defendants, Harmony wrote plaintiff and his wife, returning plaintiff’s check and note, and stating: “ We are sorry but this deal cannot be consummated at this time.” The letter was sent and the check and note were returned to plaintiff because the responsible people at Harmony knew that defendants were unwilling to sell a lot in the development to a Negro. Plaintiff then consulted Messrs. Rauh and Silard, Wash ington attorneys, who communicated with Harmony to find out the name of the seller. They -were told to get in touch with A. Sind & Associates. Rauh wrote a letter to A. Sind & Associates, who in turn took the matter up with their Washington lawyer, Morris D. Schwartz. After ne gotiations by correspondence and conversations, a meeting was held in Rauh’s office on November 28, 1961, attended by plaintiff, defendants and a voluntary conciliator. Three alternatives were discussed, namely, that defendants fur nish plaintiff: (a) a roughly equivalent house in the Rock ville area outside the development; or (b) a house to be built on a lot in another part of the 189-acre tract; or (c) a Georgetowne type house on one of 42 lots in the subdivision. Plaintiff was told that the lot covered by the October 9 sales contract was not available and would not be held, but he was not told until after July 31, 1962, that the lot had been sold to a third party. Early in January 1962 after further negotiations and correspondence, Rauh proposed an agreement which pro vided for two alternatives: (a) the supplying of a sub stantially equivalent house in the Rockville area by Janu ary 30,1962, or (b) the delivery of a Georgetown type house on lot 9 in block 3 at any time between March 15 and August 31, 1962. The proposed agreement also called for arbitra tion of any dispute over the substantial equivalence of such other house in the Rockville area, and for “ liquidated damages” in the amount of $100' a day for each day after August 31, 1962, that the completed house on lot 9 in block 3 was not delivered to plaintiff, with a limit of $15,000. The proposed agreement was not accepted by defendants, and Rauh threatened to file suit in this Court, with attend ant publicity. Defendants were anxious to avoid such pub licity, because they feared that if it were known that they had sold or might sell a house to a Negro, it would be fatal to the profitable development of the subdivision and the rest of the tract. Defendants were very anxious to obtain a respite—of two years, if possible, but at least until August 31,1962—before word should get out that they were negotiating with a Negro. Rauh finally gave defendants a deadline of noon on January 9, 1962, before which the agreement had to be accepted. He had already been in touch with Washington newspaper reporters, telling them of the proposed suit, and the newspaper reporters had in turn been in touch with defendants. On the evening of January 8, Cohen visited Rauh and agreed to a modification of the proposed agreement under which defendants would have an addi tional alternative, namely, (e) to furnish plaintiff on or before August 31, 1962, an identical Georgetown type house on a lot in the subdivision equivalent to lot 9 in block 3. The so-called liquidated damages clause, to which Schwartz had objected on the ground that it was a penalty, was retained in the agreement which Rauh presented to defendants on the following morning. That agreement, dated January 9, 1962, on which this action is brought, was signed by plaintiff, by Sind, by Cohen, and by A. Sind & Associates per Cohen. Plain tiff was reluctant to sign the agreement because he did not believe, and still does not believe, that any of the lots on which Georgetowne type houses have been built, or any other lot in the development, is equivalent to lot 9 in block 3. On the other hand, he believed that some lots could be made equivalent. I find (1) that some of the lots wmre equivalent; (2) that counsel for plaintiff drove a hard bargain with defendants when he found that they could not stand the publicity, but that the facts proven do not amount to duress; and (3) that the provision for liquidated damages was intended to be a penalty. Although both parties were reluctant to enter into the agreement, I do not find that either side acted in bad faith or intended not to perform. Defendants did not offer plaintiff either (a), a substan tially equivalent house elsewhere in the Rockville area, nor (b), the house on lot 9 in block 3; so, shortly before July 31, 1962, Rauh suggested to Cohen that he get in touch with plaintiff in order that (c), a Georgetowne type house on an equivalent lot in the subdivision could be designated and the interior colors chosen. On July 31 Cohen took plaintiff and his wife to a house, No. 28 in block 2, and offered them that house. Lot 28 had been deeded to Palro Homes, Inc., some time before, but a Georgetowne type house identical to the house on lot 9 in block 3 had been built thereon by defendants or by one 40 of their corporations. Defendants were willing and able, in good faith, to deliver that house and lot to plaintiff if plaintiff had accepted it, but the lot was not equivalent or substantially equivalent to lot 9 in block 3. It was one of the smallest lots in the subdivision, there was relatively little space between the house on that lot and the house on the lot to the rear, and there were no trees or bushes to give any privacy. Plaintiff refused to accept the house on lot 28 in perform ance of the January 9 agreement, but offered to arbitrate the question of the equivalence of the lot. Defendants and their counsel, Schwartz, who had been named their arbitrator in the agreement, refused to arbitrate, stating as their ground the presence of the penalty clause in the contract. Plaintiff then refused to accept as performance of the contract any house on any of the lots remaining un sold unless defendants would agree to pay him $2,000 for trees, bushes, etc,, which he considered necessary to make any remaining lot equivalent to lot 9 in block 3, and would also agree to pay his counsel fees. On those conditions plaintiff said that he would accept lot 38 in block 2, across the street from the lot he had originally chosen. The question of damages for delay was not raised at that time, but was raised after August 31, 1962. The parties were unable to reach any agreement, and after giving interviews to newspaper reporters, who in turn interviewed the neigh bors, plaintiff filed his complaint herein on October 25, 1962, naming as defendants Sind, Cohen and A. Sind & Associates, described in the complaint as a corporation. In his complaint plaintiff sought declaratory and in junctive relief in the nature of specific performance re quiring defendants to comply with the terms of the Janu ary 9, 1962 agreement by delivering to plaintiff the com pleted house on lot 9 in block 3 or an identical house on an equivalent lot in the subdivision, liquidated damages, compensatory damages, an injunction pendente lite against defendants’ selling 11823 Charon Lane (lot 38 in block 2, improved by a different type house), and other relief. In the complaint and at the hearing on the motion for preliminary injunction, plaintiff did not agree that lot 38 41 in block 2 or any other lot remaining unsold was equiva lent to lot 9 in block 3. He did, however, file a letter from Rauh to Schwartz dated November 16, 1962, offering to purchase and take title to 11810 Smoke Tree Road (a Georgetowne type house) on the same conditions and at the same price stipulated with respect to lot 9 in block 3 in the October 9, 1961 memorandum of sale. The letter also stated that, while achievement of such sale would moot plaintiff’s request for injunctive relief, “ it would not prejudice his existing right to damages for violation of the agreement of January 9, 1962.” After argument, this Court entered a preliminary in junction on December 6, 1962, restraining defendants from selling or offering for sale pendente lite 11810 Smoke Tree Road, finding that it was the remaining lot most nearly equivalent to lot 9 in block 3, but stating* specifically that the preliminary injunction was not intended to prej udice any rights or points either side might rely on at the trial on the merits. Counsel for plaintiff amended the complaint to include among the defendants in the case Abraham S. Sind and Israel Cohen, partners, trading as A. Sind & Associates, in substitution for A. Sind & Associates, a corporation. Counsel did not include among the defendants Judy Sind, wife of Abraham S. Sind, apparently because Washing ton counsel for plaintiffs had not taken the trouble to check the land records to determine in whose name title to the several lots in question was held. They have gen erally treated this case as a crusade rather than as a civil action involving questions of fact and law. Although defendants had raised the point that plain tiff’s complaint indicated he was unwilling to accept any remaining lot as equivalent to lot 9 in block 3, counsel for plaintiff declined to amend his complaint to allege his willingness to do so. He has never conceded that any lot remaining unsold on July 31, 1962, is equivalent to lot 9 in block 3, but during the closing argument at the trial on the merits, after the evidence was in, counsel for plaintiff agreed to accept a conveyance of defendants’ interest in 11810 Smoke Tree Road in full performance of 42 the agreement of January 9, 1962, reserving only plain tiff’s claim for liquidated damages or compensatory dam ages for delay. Discussion I. The agreement of January 9, 1962, upon which this action is brought, was not induced by duress on the part of plaintiff or his counsel; it was executed in good faith, albeit reluctantly, by both sides. It is a valid contract. A contract entirely valid at law, however, will not neces sarily be enforced specifically by a court of equity. Brooks v. Towson Realty, Inc., 223 Md. 61. For specific perform ance to be granted, the contract must be definite and cer tain in all its terms and free from all ambiguity. Trotter v. Lewis, 185 Md. 528, 532. See also Standard American Home,s, Inc. v. Pasadena Building Company, 218 Md. 619; Peoples Drug Stores, Inc. v. Fenton Realty Corporation, 191 Md. 489; Baker v. Dawson, 216 Md. 478, 488-491; New- land v. Millicent, 188 Md. 604. In Trotter v. Lewis, supra, the Court said, at p. 535: “ But specific performance may be decreed if the terms of the contract are so expressed that the Court can determine with reasonable certainty what are the duties of the par ties and the conditions under which performance is due. The American Law Institute states: ‘The usual aids to interpretation will be availed of by the Court, just as in the case of enforcement by other remedies. Expressions that at first appear incomplete or uncertain are often readily made clear and plain by the aid of common usage and reasonable implications of fact. Apparent difficulties of enforcement due to uncertainty of expression may dis appear in the light of courageous common sense.’ 2 Re statement, Contracts, Sec. 370.” The agreement of January 9, 1962, was not so indefinite or uncertain that it cannot be specifically enforced. This Court has readily concluded: (1) that lot 28 in block 2 is not equivalent to lot 9 in block 3, principally because of its small size and lack of trees or other screening; and (2) that a number of other lots, including 11810 Smoke Tree Road and the lots adjoining lot 9 in block 3, are equivalent. 43 II. “ [F]or specific performance to be granted, the con tract must not only have been full, fair and honest in the beginning but such that ‘the performance of it may be fairly and conscientiously required’.” Brooks v. Towson Realty, Inc., 223 Md. 61, 73. The agreement of January 9, 1962, meets that test. De fendants were desperately anxious to buy time, and plain tiff was willing to give them time, provided defendants would comply with any one of the three alternatives al lowed them by the agreement. Having received the bene fit of the agreement and having failed to perform two of the alternatives, (a) and (b), defendants cannot justly complain if the Court requires them to perform the third alternative, (c). No. 11810 Smoke Tree Eoad is the only remaining lot in the development improved by a Georgetowne type house. Plaintiff has now agreed to accept that house and lot in performance of defendants’ obligation under the January 9 agreement, without abatement for an alleged lack of equivalence in the lot. Defendants do not suggest that the lot is more valuable than lot 9 in block 3. The Court has found the lots to be equivalent. If plaintiff had been able to purchase another suitable house in the Rockville area, the Court would have denied specific performance and al lowed damages for any difference between the cost of such other house and $25,990, the price fixed in the memorandum of sale of October 9, 1961, and in the agreement of Janu ary 9, 1962. But the equities of this case, together with the extreme difficulty, amounting to virtual impossibility of plaintiff’s purchasing a suitable home in the Rockville area except by subterfuge, call for specific performance despite plaintiff’s delay in agreeing to accept 11810 Smoke Tree Road, or any other house except the house on lot 9 in block 3, in performance of defendants’ obligation under the Janu ary 9 agreement. Such delay may, however, affect plain tiff’s right to recover the damages which he claims. III. The failure of plaintiff to join Judy Sind as a party defendant prevents the Court from granting any relief against her. Even if she is a member of some partnership or joint venture which trades under the name A. Sind & Associates, she is not a member of the partnership which was made a defendant by counsel for plaintiff at the begin ning of the trial. The defendant partnership was specif ically stated to be Abraham S. Sind and Israel Cohen, trading as A. Sind & Associates. The evidence in this case indicates that legal title to 11810 Smoke Tree Road is held by Abraham S. Sind in trust for himself and his associates. That finding, however, is not binding on Judy Sin to destroy any dower right she may have, or to require her to join in any deed which the Court may require defendants to execute. Nevertheless, under established law, plaintiff may have a decree for specific performance against defendants, requiring them to convey any rights they may have in 11810 Smoke Tree Road, provided plaintiff is willing to pay the full contract price to defendants for their interest therein, without deduction for Judy Sind’s possible dower interest. Schneider v. Davis, 194 Md. 316; Trotter v. Lewis, 185 Md. 528. The Court will enter a decree requiring defendants to convey to plaintiff all their right, title and interest in and to 11810 Smoke Tree Road upon plaintiff’s tendering to defendants within ninety (90) days from the date of the decree, the full balance of the purchase price called for by the memorandum of sale and by the January 9 agreement, without interest. That balance is $24,990. The Court doubts whether plaintiff will be as well off under such a decree as he would have been if he had re nounced the remedy of specific performance and sought to prove damages measured by the difference between $25,990, the price fixed in the January 9 agreement, and the amount it would cost, plaintiff to buy an equivalent house and lot in the Rockville area. Plaintiff may have to finance his pur chase of 11810 Smoke Tree Road without having full title to the property. Nevertheless, after this problem was brought to the attention of plaintiff and his counsel, and they had had an opportunity for mature consideration, both plaintiff and his counsel elected to seek specific per formance and damages for delay. IV. Plaintiff is not entitled to liquidated damages. The Court has found as a fact that the provision for liquidated damages in the January 9, 1962, agreement was intended to be and was a penalty; it is, therefore, not enforceable. Defendants’ refusal, from July 31 until long after August 31, 1962, to convey to plaintiff any property in the sub division except lot 28 in block 2 and the Georgetowne type house built thereon, was a breach of the agreement of January 9, because lot 28 in block 2 was not equivalent to lot 9 in block 3. Defendants’ refusal to arbitrate the equivalence of the lot confirmed the breach. Plaintiff’s refusal thereafter to accept any of the remain ing lots upon which a Georgetowne type house had been built, without an allowance of some $2,000 for planting, etc., was not justified, since some of the lots were equivalent to lot 9 in block 3. If no remaining lot were equivalent, plaintiff would not be entitled to specific performance, but only to damages for defendants’ breach. As we have seen, plaintiff did not agree until November 16, 1962, to accept 11810 Smoke Tree Road without reduc tion in the price for any alleged lack of equivalence; even then, he coupled his acquiescence with an assertion of his right to damages “ for violation of the agreement of Janu ary 9, 1962.” Presumably this vague phrase meant liqui dated damages or compensatory damages for delay. Plaintiff’s evidence of damages consists principally of additional mileage driven once or twice a school day by plaintiff and perhaps by his wife and some payments made to a friend who cared for their teen age daughter after school. All factors considered, the Court finds that this amounted to about $50 a week for the 30 weeks from No vember 16, 1962, to the end of the school year in June 1963. Therefore, the Court awards plaintiff damages of $1,500 for delays caused by defendants’ breach not offset by plaintiff’s delay in agreeing to accept an identical house on an equivalent lot. Counsel will settle a decree within 10 days. / s / R oszel C. T h o m se n , Chief Judge, U.S. District Court. 46 I n t h e U n it e d S tates D ist r ic t C ourt fo r t h e D istr ic t of M aryland Civil Action No. 14155 R oland E. B a rn es , Plaintiff, vs. A. S in d & A ssociates, et al., Defendants D ecree The above cause coming on for hearing on the pleadings and evidence, the parties by their counsel having been heard and having submitted memoranda, and the Court having filed its written opinion herein on November 12, 1963, it is, by the United States District Court for the District of Maryland, this 30th day of April, 1964, A d ju d g ed , Ordered and D e c r e e d : 1. That the opinion of this Court of November 12, 1963, is hereby adopted as the Court’s findings of fact and conclusions of law. 2. That upon tender by the Plaintiff to the Defendants, within ninety days from the date hereof, subject to the provisions of Paragraph 6 hereof, of' the sum of $24,990.00, Defendants shall convey to Plaintiff all of the Defendants’ right, title and interest in and to the property 11810 Smoke- tree Road, upon the following terms and conditions: (a) free of encumbrance, title to be good of record, sub ject, however, to covenants, conditions and restrictions of record, and subject also to the possible dower interest of Judy Sind, wife of Abraham Sind, otherwise the deposit of $1,000.00 is to be returned and sale declared off at the option of the Plaintiff, unless the defects are of such char acter that they may readily be remedied by legal action, but the Defendants are hereby expressly released from all liability for damages by reason of any defect in the title. In case legal steps are necessary to perfect the title, ex- 47 pressly excluding any legal action with respect to the pos sible dower interest of Judy Sind, such action must be taken promptly by and at the Defendants’ expense where upon the time herein specified for full settlement by the Plaintiff will thereby be extended for the period necessary for such action. (b) Defendants to execute and deliver a deed to the Plaintiff of all of the Defendants’ right, title and interest in and to said property, without any warranties, and to pay for Federal Revenue Stamps on the deed. (c) Defendants to give possession of said property upon payment of the sum of $24,990.00 as specified in Paragraph 2 hereof and subject to the provisions of Paragraph 6 hereof. If Defendants shall fail to do so and occupy said property, Defendants shall become and be thereafter tenants at sufferance of the Plaintiff, and hereby expressly waive all notice to quit provided by law. (d) Defendants assume the risk of loss or damage to said property by fire or other casualty until the executed deed of conveyance is delivered to the Plaintiff or is recorded for him. (e) all notices of violations of County or State orders or requirements noted or issued by Montgomery County or the State of Maryland or prosecutions in any of the courts of the State of Maryland, or elsewhere, on account thereof against or affecting the property at the date of conveyance shall be complied with by the Defendants and the property conveyed free thereof, with the exception of the means of egress regulations. This provision shall sur vive the delivery or recording of the deed as specified above. (f) settlement is to be made at the office of the title company searching the title for the Plaintiff, and deposit with the title company of the cash payment as aforesaid, the deed of conveyance and such other papers as are re quired by the terms of this order shall be deemed and construed as a good and sufficient tender of performance of the terms hereof, subject, however, to the provisions of Paragraphs 2 and 6 hereof. 48 (g) taxes, general and special, are to be adjusted ac cording to the certificate of taxes as issued by the proper authority from Montgomery County, Maryland, except that assessments for improvements completed prior to the date of this decree, whether assessment therefor had been levied or not, shall be paid by the Defendants or allowance made therefor at the time of transfer. (h) examination of title, tax certificate, conveyancing, notary fees, county and state transfer and revenue stamps and all recording charges, including those for purchase money trust, if any, are to be at the cost of the Plaintiff; provided, however, that if upon examination the title should be defective, excluding any defect which may arise by reason of the possible dower inters! of Judy Sind, wife of Abraham Sind, and is not remedied as aforesaid, the Defendants hereby agree to pay the cost of the examination of title. (i) furniture and furnishings, if any, contained in said property are not to be included in the conveyance of said property from the Defendants to the Plaintiff; (j) the costs incident to the installation of house con nection to sewers, curb and gutter, sidewalks and streets shall be borne by the Defendants if required to be installed prior to the time of conveyance hereunder by the appro priate governmental authorities, but this shall not be con strued to relieve the Plaintiff of his liability to assume and pay the annual benefit charges of the Washington Sub urban Sanitary Commission as set out in Item (k) hereof. (k) if the property is serviced by the Washington Sub urban Sanitary Commission, annual benefit charges of said Commission are to be adjusted to date of conveyance and assumed thereafter by Plaintiff. (l) at or before the property 11810 Smoketree Road is conveyed by the Defendants to the Plaintiff as hereinabove provided, the Defendants shall furnish and install, at their own cost and expense, in said property a drier, washer, an air conditioning unit, a hatch cover on the carport and shall make a monetary allowance to the Plaintiff of $100.00 in lieu of painting. 49 3. That in the event the Plaintiff fails to tender to the Defendants the sum of $24,990.00 within ninety days from the date hereof, subject to the provisions of Paragraph 6 hereof, the obligation of the Defendants imposed by Para graph 2 of this Decree to convey to the Plaintiff all of the Defendants’ right, title and interest in and to the property 11810 Smoketree Road shall be immediately and finally rescinded and the Defendants shall be at complete liberty to make such other conveyance and disposition of said property as they may see fit, free and clear of any claim thereto on the part of the Plaintiff, and the Defendants shall return to the Plaintiff, without interest, the sum of $1,000.00 heretofore paid by the Plaintiff to the Defendants. 4. That the Plaintiff recover of the Defendants the sum of $1,500.00 as damages. 5. That the Defendants pay the costs of this proceeding. 6. In the event of an appeal from, this decree the opera tion thereof shall be stayed upon the filing by the appellant or appellants of an appeal bond in amount or penalty of $1,000.00. If an appeal is taken and if this decree is affirmed the period of ninety days specified in Paragraphs 2 and 3 hereof shall account from the date upon which the order affirming the decree becomes final. R o sz e l C. Approved as to form only: T h o m s e n , Chief Judge. J o h n S il a r d , of counsel for the Plaintiff. E dw ard P ie r s o n , of counsel for the Defendants. (2519-7)