Kannavos v. Annino

Apostolos Kannavos (plaintiff) bought a multi-family building from Carrie Annino (defendant) after seeing a newspaper ad describing it as multi-family income property, but the city of Springfield soon moved to shut down that multi-family use. Annino knew she had converted the building from a single-family home into a multi-family dwelling without the necessary permit, and knew the zoning district actually prohibited multi-family use altogether - facts Kannavos never learned because he didn't inquire about zoning or permits before buying. Annino also knew Kannavos was buying specifically to use the building as a multi-family investment, and the property was worth substantially less as a single-family home. After the city's action, Kannavos sued in equity to rescind the purchase; the trial court denied Annino's demurrer and granted rescission, and Annino appealed.