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ARTICLE ID 195546

$________ JUDGMENT – Construction contract – Fraudulent misrepresentation – Plaintiff alleged that defendants failed to disclose that property she contracted to purchase contained gas transmission line, and was in a ________-year flood elevation.

Hartford County, CT

In this contract matter, the plaintiff purchaser sought to rescind the contract of sale and obtain the return of her deposit when she learned that the defendant developer, and its principal, failed to disclose that the lot contained a gas transmission line and was situated in a ________-year flood elevation area. The defendant disputed the plaintiff’s allegations, and refused to return the deposit monies.

In July ________, the female plaintiff became aware of the defendant’s development subdivision. The plaintiff met with the defendant principal, and the real estate agent on the proposed lot number three, and following the discussions that took place, as well as the representations of the defendant both on its website and plot plan – including the verbal discussions at that meeting – the plaintiff entered into a contract to purchase lot number three as described on the defendant’s website. The plaintiff signed a contract on August 10, ________, and gave a deposit of $________ to the defendant to reserve the lot. On September 6, ________, the plaintiff gave an additional deposit of $________ and entered into a contract with the defendant corporation to purchase the lot, and the house to be constructed on it for the sum of $________. After signing the contract, the plaintiff was doing additional research on the property when she learned that there was a 75 foot right of way granted to a gas company for a gas transmission line that was an encumbrance to the property, as well as the property from northwesterly to southeasterly was a ________-year flood elevation line. Neither of these was marked on the property in any meaningful manner, and neither was disclosed to the plaintiff prior to her signing the contract. The plaintiff requested the contract be terminated, and her deposit be returned. The defendants refused, and the plaintiff brought suit, seeking rescission of the contract and return of her deposit monies, due to the failure to disclose the impediments on the property. She alleged negligent misrepresentation and fraud on the part of the defendants.

The defendant denied the allegations and disputed that the plaintiff was entitled to any type of relief. The defendants argued that the plaintiff had an obligation to investigate the property, and her failure to do so precluded her relief. The defendants brought a counterclaim for breach of contract and sought liquidated damages in the amount of the deposit.The matter proceeded to a bench trial over a period of four days. At the conclusion of the trial, the court entered judgment in favor of the plaintiff, ordering rescission of the contract and return of the plaintiff’s deposit. The court also awarded the plaintiff the sum of $________ in punitive damages payable jointly and severally by the defendants. The court denied the relief sought by the defendants in their counterclaim. Judgment in the amount of $________ was entered for the plaintiff.

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