Lobo IV, LLC v. V Land Chicago Canal, LLC

Consolidated appeals arising form court order granting specific performance on 2 real estate purchase contracts in which, after bench trial, court found that Plaintiffs were entitled to purchase properties pursuant to purchase contracts and entitled to monetary damages. In later proceedings, court found that intervenor bank had issued several mortgages on properties that had priority over purchase contracts. Plaintiffs were entitled to specific performance of contracts at the lowered purchase price and entitled to damages caused by Defendant's delay in performing. Plaintiffs did not terminate this right by failing to close on the court-set closing date, where  an objectionable pro forma title policy was presented on day of closing. Intervenor's mortgages had priority over Plaintiffs' interest based on doctrine of conventional subrogation. Extent of subrogation was limited to amounts of construction loans. Purchase price should have been abated to full extent of Plaintiffs' judgment against Defendant. (REYES and BURKE, concurring.)