Friday, January 01, 2010

Bank Liable For $400K For Failing To Disclose Contamination Of Property Sold To Local Couple

In Kalkaska County, Michigan, the Traverse City Record Eagle reports:
  • A Kalkaska County jury ordered a local bank to pay a Williamsburg couple $400,000 after the bank allegedly failed to disclose contamination on property the couple purchased. Larry and Theresa Lelito bought a 5-acre parcel on M-72 just west of Kalkaska from Alden State Bank in December 2003. The Lelitos later discovered it was contaminated with trichloroethylene (TCE), and sued the bank for fraud.

***

  • The Lelitos bought the parcel for $150,000 and subsequently spent $300,000 to construct an office building there. The property's previous owner told Larry about the contamination in 2006, said the Lelitos' attorney, Robert A. Steadman. [...] Steadman said the property's previous owner testified during trial that he told the bank about the contamination, though bank officials testified they didn't remember that conversation.

For the story, see Couple awarded $400K in suit against bank (Suit alleged bank failed to disclose contamination).

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