V.S.H. Realty, Inc. v. Texaco, Inc.

United States Court of Appeals for the First Circuit

757 F.2d 411 (1st Cir. 1985)

If a contracting party discloses partial information that could be misleading, that party has a duty to reveal all material facts it knows to avoid liability for deceiving the other party.

Relevant Facts

V.S.H. Realty, Inc. (the plaintiff) contracted with Texaco, Inc. (the defendant) to purchase a petroleum storage facility “as is.” During negotiations, the plaintiff repeatedly asked the defendant about oil leakage on the property. In the sales contract, the defendant disclosed oil seepage in the boiler room of the facility. About one month after the parties signed the contract, the plaintiff’s representatives were on the property and noticed oil seepage on multiple additional parts of the property. The plaintiffs notified the defendant and sought a return of their down payment. The defendant refused.

The plaintiff sued, alleging common law misrepresentation and violation of a Massachusetts statute prohibiting unfair and deceptive business practices. The district court dismissed the plaintiff’s claims, and the plaintiff appealed.

Issue

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Holding & Reasoning

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Concurrence

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Dissent

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Last updated:

December 13, 2020

Judicial Opinion

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Procedural History

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Citations

757 F.2d 411 (1st Cir. 1985)