Van Elson Corporation v. Westwood Mall

SILAK, Justice Van Velson Corporation (Van Velson) initially filed this suit as a foreclosure action against Westwood Mall
Associates (Associates) claiming that Associates had defaulted on a $400,000 loan. Van Velson sought to recover the principal
and interest on the loan, plus costs and attorney fees, and also to foreclose on the Westwood Mall property which Associates
had mortgaged to secure the loan. Associates answered and counterclaimed, asserting that Van Velson had defaulted on a separate
agreement with Associates to purchase the Westwood Mall and to use the $400,000 as a down payment on the purchase price, and
as a result of Van Velson's default Associates was entitled to retain the $400,000 down payment as liquidated damages. The
district court denied Van Velson's motion for summary judgment and granted summary judgment to Associates on their cross-motion. I.