On a summary judgment motion arising from a commercial real estate transaction, the court dismissed a counterclaim seeking rescission or $1.5 million in damages based on alleged environmental and structural misrepresentations relating to a former mine site.
The court held the original agreement of purchase and sale, including its warranties, survived closing subject to negotiated changes, but found the purchasers had long possessed the material information about the mine shaft, buried scrap metal, and possible ground instability before closing.
Applying the post-Hryniak summary judgment framework, the court concluded there was no genuine issue requiring a trial because the alleged warranty claim was inconsistent with the purchasers' informed decision to complete the transaction and give a promissory note.
Judgment was therefore granted on the promissory note.