Waste Management of Massachusetts v. Carver: Massachusetts Buyer Entitled to Recission for Seller's Failure to Disclose Ground Water Contamination

The Massachusetts Appellate Court held that a buyer was entitled to rescission of a purchase contract where the defendant/seller disclosed certain soil contamination on the property but did not disclose groundwater contamination. At the time of contract, the seller was not aware of the groundwater contamination, but its consultant had identified and prepared a report indicating the problem existed. Although the seller disclaimed any knowledge of contamination other than the soil problem, it knew that the consultant was investigating for other problems, and had not yet received the consultant's report. Thus, the seller spoke knowing it had incomplete knowledge and, accordingly, the buyer was entitled to rescission.

Waste Management of Massachusetts v. Carver, 37 Mass. App. Ct. 694, 642 N.E.2d 1058 (Mass. App. Ct. 1994).

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