Carter v. Gugliuzzi

Agent Crane, working under brokerage Smith Bell (defendant) for sellers Gugliuzzi and Barreto, personally knew from living in the neighborhood that it suffered frequent severe windstorms causing property damage, but never disclosed this to the listing agent, Bennett, or to buyer Carter (plaintiff), who was told full disclosure had been made. After Carter bought the house, another windstorm caused significant damage, and she sued for fraud and negligent misrepresentation; the trial court imputed Crane's knowledge to Smith Bell and ruled for Carter, and Smith Bell appealed, arguing Crane acquired the wind knowledge outside his employment.