Holmes v. Summer

Real estate agent Sieglinde Summer (defendant), representing the sellers during a period of widespread foreclosures and short sales, knew when she presented the purchase contract to the Holmeses (plaintiffs) that the property carried mortgages far exceeding its sale price and that neither the sellers nor their lenders were prepared to cover the shortfall, making the sale's failure effectively inevitable; she never disclosed this to the Holmeses, who had already sold their prior home to finance the purchase and suffered financial losses when the deal collapsed. The trial court ruled Summer owed the Holmeses no duty of disclosure and dismissed their suit.