January 24, 2016

Griffith v. Byers Construction Company of Kansas, Inc. - 212 Kan. 65, 510 P.2d 198 (1973) - Supreme Court of Kansas

FACTS: Plaintiff bought houses from defendant on land that used to be a salt water disposal area.  Therefore nothing would grow around the houses.

HISTORY: Trail court held fraud b/c lack of privity between plaintiff and defendant.

ISSUE: Was there basis for fraud?

HOLDING: Yes

RATIONALE: there was failure to disclose a fact which may or may not have induced the buyers to continue the business transaction.  Furthermore the soil condition is a material factor in choosing a lot to build a house on.  No lack of privity b/c developers acted as temporary was station for the private property.

DISPOSITION: Implied warranty claims affirmed.  Claims on fraud reversed.