Stechschulte v. Jennings
Supreme Court of Kansas
298 P.3d 1083 (2013)
A. Drue Jennings (defendant) had professionals repair significant roof and window leaks that caused water damage in his home, then hired agent Emily Golson to sell it. On the required disclosure form, Jennings denied any water leakage and material defects and omitted the repairs, though he did admit some window leaks and repairs had occurred; Golson knew something about the repair work. Daniel and Satu Stechschulte (plaintiffs) bought the home and signed a form acknowledging Jennings's no-problems disclosure. After heavy rains, they discovered extensive water infiltration and, later, elevated mold levels. They sued for breach of contract, fraudulent inducement, fraud by silence, negligent misrepresentation, and consumer-protection violations. The trial court granted summary judgment for the defendants; the court of appeals reversed; both sides sought review by the Kansas Supreme Court.
Whether a home seller may be held liable for failing to disclose known adverse information about the property, including material defects that could affect the home's value, despite the buyer's signed acknowledgment of the seller's disclosure form.