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Hill v. Jones | 725 P.2d 1115 (1986)
Termites nibbling on joists and floorboards can devour a house. That’s why every home buyer gets an inspection before closing the deal. In Hill versus Jones, a buyer learned that lesson all too well.
Warren and Gloria Hill were shopping for a house. They very much liked a home owned by Ora and Barbara Jones.
On one of their several visits to view the house, Mr. Hill asked about a ripple in the teak parquet floor. Mrs. Jones replied that it was water damage from a broken water heater. Mr. Hill worried about termites but relaxed when the termite inspection revealed no visible infestation, physical damage, or evidence of treatment. The Hills bought the house for $72,000.
After they moved in, the Hills made some alarming discoveries. They found a pamphlet about termites in a drawer. A new neighbor told them that the house had once been infested with termites. Just after closing, Mrs. Hill realized that the wooden steps were crumbling due to termite damage. Repairs would cost at least $5,000.
The Hills sued. During discovery, they learned that the house had been infested with termites nineteen years earlier and had been treated regularly over the years, though not all damage had been repaired. The inspector returned to the house and found damage that should’ve been indicated in his initial report. The Joneses had known about prior infestations when they purchased the house. They’d paid for yearly inspections while they lived there and twice had to treat for termites. They’d also treated and replaced parts of the fence. But the Joneses had mentioned none of this to the Hills, the realtor, or the termite inspector.
The Hills claimed that the Joneses had failed to disclose the existence of termite damage and wanted to rescind their agreement to purchase the house. The trial court granted summary judgment to the Joneses, finding that they had no duty to disclose information about termites. The Hills appealed to the Court of Appeals of Arizona.
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