Swinton v. Whitinsville Savings Bank
Supreme Judicial Court of Massachusetts
42 N.E.2d 808 (1942)
Swinton (plaintiff) bought a house from Whitinsville Savings Bank (defendant) and moved in with his family; nearly two years later, he discovered the house had been infested with termites even at the time of sale, an infestation he could not have observed but that Whitinsville knew of and never disclosed. By the time Swinton discovered the infestation, termite damage was extensive enough to require substantial repair and control costs to prevent the house's destruction, and he sued Whitinsville for fraudulent concealment; the trial court dismissed his complaint, and he appealed.
Whether the seller of property may be held liable for failing to disclose to the buyer a defect of which the seller is aware but the buyer is unaware.