Stambovsky v. Ackley
Supreme Court of New York, Appellate Division
572 N.Y.S.2d 672 (1991)
Ackley (defendant) had publicly promoted her Nyack home as haunted, including a Reader's Digest feature and inclusion on a local haunted-homes tour, but never disclosed this reputation to buyer Stambovsky (plaintiff), who conducted a standard inspection and title search that could not have revealed the house's supernatural reputation; upon learning of it, Stambovsky sued to rescind the sale, and the trial court dismissed his complaint for lack of an available legal remedy.
Whether nondisclosure of a condition the seller created that materially impairs the contract's value, and which is within the seller's knowledge or unlikely to be discovered by a prudent purchaser exercising due care, provides a basis for rescission.