Court of Appeals of Ohio
702 N.E.2d 1246 (1998)
Ferdinand Leal and his wife (the Leals) (plaintiffs) entered into a partnership agreement with Joseph and Claudia Holtvogt (the Holtvogts) (defendants). The partnership agreement afforded the Leals a one half interest in a horse that the Holtvogts owned in exchange for $16,000. Prior to the agreement, the Leals maintained a student-teacher relationship with the Holtvogts. The Holtvogts were experts in the equine industry and the Leals testified that they entered into the agreement based on representations the Holtvogts made. Specifically, the Holtvogts knew what type of horse the Leals were looking for and suggested that the Leals abstain from purchasing another horse and enter into their agreement. The Holtvogts also stated, among other things, that their horse could command high prices as a stud. The Holtvogts failed to disclose that the horse had been treated for lameness. At trial, a horse breeder testified that she would have reservations about breeding a lame horse. The horse died before the Leals could recoup their investment, and the Leals sued the Holtvogts for breach of warranty. The lower court found in favor of the Leals, and the Holtvogts appealed.
Rule of Law
Holding and Reasoning (Fain, J.)
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