California Court of Appeal
145 Cal. App. 3d 261 (1983)
Reed (plaintiff) purchased a home from King, unaware that a woman and her four children were murdered there ten years earlier. King and his real estate agent were aware of this but did not disclose it to Reed because they felt the event would materially affect the value of the home. They even asked neighbors not to tell Reed about the murders. Reed later found out about the murders and sued King and the real estate agent (defendants) for rescission and damages. Reed paid $76,000 and alleged that the home was worth $65,000 because of the murders. The trial court dismissed the complaint for failure to state a cause of action because there was no concealment of a material fact. Reed appealed.
Rule of Law
Holding and Reasoning (Blease, J.)
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