Ps and Ds entered into a written agreement for Ds to purchase Ps' residence for a price of $205,000. The sales escrow was to close in early December of 1980. Ds defaulted and the sale did not take place. On December 7, 1980, within a few days after the expected close of escrow and breach by Ds, Ps entered into another contract to sell the property to third parties. The purchase price was now $215,000. The subsequent sale proceeded to close in February of 1981. Ps sued Ds on December 5, 1980, for breach of the first sales contract. The court recognized that there were no 'benefit-of-the-bargain' damages since the purchase price in the rapid resale established that the value of the property at the time of the breach was in excess of the contract price of the earlier sale. The trial court found consequential damages. Ps had to pay the costs of insurance, gardening, property taxes, utilities, and encumbrance interest payments incurred between the default and the subsequent sale. The trial judge declined to offset the consequential damages with the increased resale proceeds. Ps got a judgment of $2,648.34. Ds appealed.

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