Obde v. Schlemeyer

The Obdes (plaintiffs) bought an apartment from the Schlemeyers (defendants) and, after moving in, discovered a latent termite infestation the sellers knew about but never disclosed because the buyers never specifically asked. The sellers had previously tried, unsuccessfully, to eliminate the termites but had not followed the exterminator's full recommended treatment for financial reasons, so the exterminator gave no assurance the infestation was gone.

Whether parties to a transaction have a duty to disclose material facts whenever justice, fair dealing, and equity demand it.