The plaintiffs sued the defendant for breach of contract and negligent misrepresentation concerning latent defects (water infiltration and foundation issues) in a property they purchased.
The court found the plaintiffs failed to prove the defendant's knowledge of the latent defects, which is a prerequisite for vendor liability.
The negligent misrepresentation claim was dismissed due to an "entire agreement" clause in the agreement of purchase and sale, which precluded reliance on pre-contractual representations.
Although finding no liability, the court assessed damages, noting the plaintiffs' failure to mitigate significantly increased the remediation costs.