Watson v. Avon Street Business Center, Inc.
Virginia Supreme Court
311 S.E.2d 795 (1984)
- Written by Eric Miller, JD
Facts
John Hull formed a corporation, Avon Street Business Center, Inc. (Avon) (plaintiff), to purchase a warehouse from the members of a partnership that included Norman Watson (the sellers) (defendants). After the purchase, Avon discovered a defect in the warehouse’s roof and brought suit against the sellers, whom Avon alleged had willfully misrepresented the condition of the roof. Evidence established that the roof had been damaged and repaired prior to the purchase but that Avon had full access to the sellers’ business records, which disclosed the relevant insurance settlement. Evidence also showed that the sellers’ real-estate broker, Douglas Zerkel, made no guarantees but informed Avon about the previous damage, provided Avon with ample opportunity for inspection, and referred to the roof as a “25-year roof” and a “good roof.” Avon introduced receipts to support an argument that the amount spent on repairs was inadequate. The sellers moved to strike Avon’s evidence, but the motion was denied. The trial court granted Avon compensatory and punitive damages. The sellers appealed. The Virginia Supreme Court granted certiorari.
Rule of Law
Issue
Holding and Reasoning (Russell, J.)
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