Gray v. First NH Banks

Gray and his family (plaintiffs), before finalizing their purchase of a lakefront bowling alley from First NH Banks (defendant) through agent La-Sal (defendant), learned from a former employee about significant septic-system defects, explicitly planned to use that knowledge to negotiate a lower price, and referenced the defects in their own purchase proposal; the final sales agreement didn't mention the septic issues, but a state statute required sellers of waterfront property to complete a sewage-system site assessment before listing the property, which the seller only obtained one day before closing. After experiencing septic problems post-purchase, the Grays sued for rescission based on the statutory violation and for fraud, but the trial court found the Grays' prior knowledge defeated both claims.