Prospect Development Co. v. Bershader
Virginia Supreme Court
258 Va. 75, 515 S.E.2d 291 (1999)
- Written by Rich Walter, JD
Facts
Knowing that Steven Bershader and his wife (plaintiffs) were looking for a wooded and secluded lot in its new subdivision, Prospect Development Company, Inc. (Prospect) (defendant) touted the advantages of Lot 23, which adjoined undeveloped Outlot B. Prospect told the Bershaders that Outlot B had failed its percolation test and therefore could never be developed, thereby preserving Lot 23’s seclusion in perpetuity. Based on their belief in this representation, the Bershaders paid a premium to purchase Lot 23, which they landscaped to harmonize with Outlot B’s characteristics. The Bershaders sued Prospect when they later learned that Outlot B had never been percolation tested, and that Prospect had always intended to develop the outlot. A chancellor in equity ruled in the Bershaders’ favor. Prospect appealed to the Virginia Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Hassell, J.)
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