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Italian Cowboy Partners, Ltd. v. Prudential Ins. Co.

Supreme Court of Texas

341 S.W.3d 323 (2011)

Relevant factsFree

The Secchis, owners of Italian Cowboy Partners (plaintiff), leased a building from Prudential Insurance and its property manager (defendants) after the property manager, Powell, repeatedly and specifically assured them the building was in perfect condition with no problems. After renovations uncovered a solidified grease trap causing a pervasive sewer gas odor - a problem the prior tenant's manager said Powell had actually known about - and months of failed fixes, including a smoke test Powell reported found nothing even though testers privately told the Secchis they found old smoke bombs from an earlier test, the Secchis closed the restaurant and sued for fraud; the trial court ruled for the Secchis, but the appellate court reversed based on the lease's general disclaimer language.

IssueFree

Whether a contract must clearly and specifically disclaim reliance on misrepresentations to avoid liability for fraud in the inducement or antecedent fraud.

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