Case Settled for $300,000

Case Settled for $300,000
  • On or about January 27, 2015 , Plaintiff entered into a written contract with Defendant to purchase a residential property located at 5114 Grantwood Street, Houston, Texas 77004 (the “Property”). See Exhibit A, Residential Property Purchase & Sale Agreement.
  • Pursuant to the transaction, Defendant completed and signed The Texas Real Estate Seller’s Disclosure Notice which required Defendant to disclose his knowledge of the condition of the Property, whereby Defendant marked “No,” in response to the question, “Are you, Seller aware of previous flooding onto the property.” Exhibit B, Seller’s Disclosure Notice. Likewise, Defendant marked “No” in response to the question of whether he was aware of any previous flooding into the structures on said property.
  • Subsequent to closing and occupying the Property, Plaintiff was told by a neighbor that the Property frequently flooded prior to her purchase of the Property, as well as throughout the Defendant’s ownership. The Property has flooded three times since Plaintiff’s occupancy. Additionally, Plaintiff’s neighbor had received complaints of flooding from previous tenants who had occupied the Property when Defendant owned said property.
  • Defendant actively concealed and intentionally failed to disclose his awareness of previous flooding onto the Property. These actions are in violation of Texas Law, and specifically constitute: (1) fraud; (2) fraud by non-disclosure; (3) breach of contract; (4) negligent misrepresentation; (5) negligence; and (6) violations of the Texas Deceptive Trade Practices Act.
  • Defendant’s concealment and intentional failure to disclose his awareness of previous flooding onto the Property constituted a false representation and failure to disclose material information to the Plaintiff, in an effort to induce the Plaintiff to purchase the Property.
  • Further, Defendant breached the February 17, 2015 Amendment to the contract by failing to provide Plaintiff with all documentation of all electrical plumbing and foundation work done to the property during this ownership of same pursuant to Section 9 of said Amendment. See deposition of Defendant at page 106:10-20; 107:12-23; 108:5-16; see also Exhibit A, page 10, section 9, Other Modifications.  This breach specifically caused Plaintiff damages and is an additional basis of Plaintiff’s breach of contract claim.
  • Plaintiff acted upon Defendant’s misrepresentations, and such action was reasonable and foreseeable in light of the promise made by Defendant.

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