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Lyons v. McDonald

501 N.E.2d 1079 (1986)

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Lyons v. McDonald

Indiana Court of Appeals

501 N.E.2d 1079 (1986)

Facts

Kenneth and Jo Ann Lyons (defendants) bought a home from Thomas and Joan McDonald (plaintiffs). During one of the McDonalds’ tours prior to the sale, Thomas asked Kenneth if he knew of any problems with the home. Kenneth replied that he did not know of any particular problems. After the purchase, the McDonalds discovered significant termite damage. With the assistance of a contractor, the McDonalds determined that the house would have to be gutted and the structure reinforced. The McDonalds learned that the owner of the house prior to the Lyonses had told the Lyonses that the house had termites. In addition, the McDonalds learned that a contractor who had done some work on the house for the Lyonses had discovered termite damage and had told the Lyonses about it. The McDonalds likely would not have purchased the home had they known about the termite damage. The McDonalds sued the Lyonses for fraudulent misrepresentation. The trial court ruled in favor of the McDonalds. The Lyonses appealed.

Rule of Law

Issue

Holding and Reasoning (Hoffman, J.)

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