Lenawee County Board of Health v. Messerly

The Messerlys (defendants) bought an apartment property with a septic tank the prior owner had installed without a permit, in violation of the health code, and later sold the property to the Pickleses (plaintiffs) under a contract stating the buyer had examined and accepted the property in its present condition with no other understandings. After discovering raw sewage seeping from the land and having the property condemned by the local health board, the Pickleses sued for rescission, alleging failure of consideration and concealment; the trial court found no fraud (since neither party knew of the septic violation) and enforced the contract "as is," and the court of appeals reversed in part before certiorari was granted.