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Keywords

contractplaintiffdefendantdamageszoningcomplianceregulation

contractplaintiffdefendantdamageszoningregulation

Related Cases

Richard v. A. Waldman & Sons, Inc., 155 Conn. 343, 232 A.2d 307

Facts

The plaintiffs purchased a house and lot from the defendant developer, who provided a plot plan indicating compliance with zoning ordinances. After taking possession, the plaintiffs discovered that the house was only 1.8 feet from the property line, violating zoning regulations. The developer had misrepresented the location of the house, leading the plaintiffs to rely on this incorrect information.

The parties, by written agreement, contracted for the sale and purchase of a lot together with a building then being used as a model home by the defendant, a developer of residential real estate, for sales purposes.

Issue

Did the developer's misrepresentation regarding the location of the house constitute a breach of warranty, entitling the purchasers to damages?

The defendant claims that ‘(a)t most, there was an innocent misrepresentation of fact by the defendant.’

Rule

A misrepresentation that induces reliance can be actionable, and if it is in the nature of a warranty, it allows for recovery under the sales contract for breach of warranty.

An innocent misrepresentation may be actionable if the declarant has the means of knowing, ought to know, or has the duty of knowing the truth.

Analysis

The court found that the developer falsely represented the location of the house, which was a statement of fact that the plaintiffs were entitled to rely on. The developer, as a professional in real estate, had special knowledge regarding the zoning requirements and the actual positioning of the house. The court concluded that the misrepresentation was not innocent, as the developer had a duty to know the truth.

The facts, as properly found, clearly show that the plaintiffs had reasonable grounds upon which to attribute to the defendant accurate knowledge of what it represented as to the location of the structure on the lot.

Conclusion

The court ruled in favor of the purchasers, affirming that the developer's misrepresentation constituted a breach of warranty, and the plaintiffs were entitled to damages.

The court concluded (1) that the defendant falsely and recklessly represented to the plaintiffs, for the purpose of inducing action, that the premises had a southerly sideyard of twenty feet and that there was no violation of the zoning regulations.

Who won?

The purchasers prevailed in the case because the court found that they were misled by the developer's false representations regarding the zoning compliance of the property.

The plaintiffs may seek damages resulting from the defendant's misrepresentation and at the same time retain title to the property.

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Related Cases

Baltimore & O.R. Co. v. Thomas, 37 App.D.C. 255, 1911 WL 20139

Albright v. Morton, 321 F.Supp.2d 130, 32 Media L. Rep. 1769, 7 A.L.R.6th 757

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