The plaintiff purchased a farm property from the defendant vendors.
After closing, she discovered severe latent defects, including a history of basement flooding, a failed septic system, and that the house additions and garage were built without building permits.
The plaintiff sued the vendors for breach of contract and negligent misrepresentation, and her title insurer for breach of contract after it denied coverage.
The court found the vendors liable for actively concealing defects and acting with reckless disregard.
The court also found the title insurer liable, holding that the lack of permits and unsafe building orders were covered risks under the policy.
The plaintiff was awarded damages for the full replacement cost of the structures, special damages, general damages for mental distress, and punitive damages against the vendors.
The title insurer was held jointly and severally liable for the replacement costs and special damages, but was granted full indemnity from the vendors.
