Johnson v. Healy
Supreme Court of Connecticut
405 A.2d 54 (Conn. 1978)
John Healy (defendant) sold a house to Ronald Johnson (plaintiff), and during negotiations Healy told Johnson the house was made of the best material with nothing wrong with it, a statement Johnson relied on in purchasing the property; Healy did not actually know of any structural problems at the time. Years later, a structural defect caused the house to settle and severely damage the foundation and sewer lines; Johnson repaired the damage and sued for misrepresentation, and the trial court found for Johnson but awarded damages not based on repair costs, prompting cross-appeals.
Whether the seller of a house is liable to the buyer for innocent, but false, statements that induce the buyer to purchase the house.