The National Trial Lawyers
  • Home
    • Meet Our Team
    • Contact Us
    • Mission & Goals
    • FAQ
  • Webinars
  • News
  • Membership Directory
    • Top 100 Map – Civil Plaintiff
    • Top 100 Map – Criminal Defense
    • Top 40 Under 40 Map – Civil Plaintiff
    • Top 40 Under 40 Map – Criminal Defense
  • Top 100
    • Civil Plaintiff Officers / Executive Committee
    • Criminal Defense Officers / Executive Committee
    • Benefits
    • About
    • Top 100 Presidents Message
    • Diplomat
    • Membership Renewal
    • Member Profile Updates
    • Top 100 Badge
  • Top 40
    • Civil Plaintiff Officers / Executive Committee
    • Criminal Defense Officers / Executive Committee
    • Top 40 Under 40 Trial Academy Bootcamp
    • Benefits
    • About
    • Top 40 Presidents Message
    • Membership Renewal
    • Member Profile Updates
    • Top 40 Badge
  • Specialty Assoc
    • About
    • Shop
    • Officers
    • Membership Renewal
    • Member Profile Updates
  • Nominate
    • Top 100
    • Top 40
    • Specialty Association
    • Trial Lawyer Hall of Fame
    • Trial Lawyer of the Year
    • Trial Team of the Year
    • America’s Most Influential Trial Lawyer
    • America’s Most Influential Law Firm
    • Lifetime Achievement Award
  • Shop
  • Magazine
    • A-List
  • Education and Networking Agenda
    • Trial Lawyers Summit
    • Top 40 Under 40 Trial Academy Boot Camp
    • Mass Torts Made Perfect
    • The Lanier Trial Academy Master Class 6.0
    • The Business Of Law
    • Webinars
  • Hall of Fame
    • Trial Lawyer Hall of Fame

Court Affirms Bank of America Liability for Sale of Mold-Infested Home

Posted on January 18, 2016 by Larry Bodine

Despite the “as is” clause in a home mortgage contract, the Wisconsin appeals court ruled that Bank of America’s (BOA) deceptive representation of a home induced plaintiff Catherine Fricano to make a purchase she would not have made otherwise.mold-remediation

Shortly after closing on the property, Fricano proceeded with upgrades house when she discovered mold “saturated” throughout the home.

This required Fricano to strip the house down to studs and have the entire interior reconstructed because of the extensive water and mold damage.

Fricano filed a fraudulent misrepresentation suit under WIS. STAT. §100.18. She alleged BOA misrepresented the condition of the home, and claimed that since it acquired the home by foreclosure it had “little or no direct knowledge regarding the condition of the home.” Her broker stated the “we know nothing!” language was very common with foreclosures.

The bank argued Fricano’s claims were barred by the state statute, evidence was legally insufficient to prove Fricano was materially induced to purchase, and that it was the bank’s intent to induce her.

See Also: Fifth Circuit Affirms Medical Expenses for Asbestosis Victim

Bank’s Pre-Sale Activities

When the bank acquired the home, the listing agent notified Bank of America of the “severe water damage.” The same agent conducted an inspection and warned that mold may develop. A water bill showed that 246,500 gallons of water in February. A pipe burst causing the entire house to flood, and ceilings to cave in.

There were reports and pictures showing visible mold in several parts of the home including the living room ceiling, kitchen, and basement. Seven months later BOA approved mold and remediation work, but the agent informed the bank the work was unsatisfactory.

BOA proceeded with listing the home for sale and potential buyers started viewing the property.

Plaintiff’s Inspections

Fricano participated in several walk-throughs of the home. Fricano, her fiancé, and real estate agent admitted to seeing mold in the basement and noticed a musty smell.

Before closing Fricano hired an inspector who conceded mold was present in the basement and many walls had been replaced throughout the house. He recommended she consult an environmental specialist about mold removal.

Because the specialist did not report damage in the livable areas of the home, Fricano proceeded with the closing.

Banks Arguments Denied

Under the Wisconsin fraudulent misrepresentation statute, a party is not relieved from liability of deceptive practices by making statements in a contract disclaiming knowledge of defects.

As a buyer Fricano was entitled to “rely upon and expect full and fair disclosure of all material facts related to the property.” Bank of America made affirmative misrepresentations about the condition of the home, thus the court stated an “as is” clause is not a complete bar when a claim is based on affirmative misrepresentations.

The statute states that the misrepresentation must be made to a member of the public. BOA argued because Fricano made an offer on the home she was no longer a member of the public but instead shared a “particular relationship.” However, the court held there was no contract between the plaintiff and bank when the bank misrepresented its knowledge of mold issues.

The banks remaining arguments were without merit and it did not matter that Fricano had notice of the issues through home inspections. The court stated, “in some cases a plaintiff’s believe of a defendant’s representations are unreasonable as a result the plaintiff’s reliance is also unreasonable.”

 

This case is Catherine Fricano v. Bank of America NA , Appeal No. 2015AP20, State of Wisconsin Court of Appeals District II

Posted in Business Law, Consumer Protection

Comments are closed.

News Categories

Read about other Top Jury Verdicts

A $230 Million Settlement Is Reached Over a 2015 Southern California Oil Spill

A $230 Million Settlement Is Reached Over a 2015 Southern California Oil Spill

The owner of an oil pipeline that spewed thousands of barrels of crude oil onto Southern California beaches in 2015 has agree[Read More...]
The LeClairRyan-UnitedLex Dispute Reaches a Pending $21 Million Settlement

The LeClairRyan-UnitedLex Dispute Reaches a Pending $21 Million Settlement

After a prolonged mediation process, the LeClairRyan bankruptcy estate looks to have reached a sizable settlement in one of t[Read More...]
The Families of Holyoke Soldiers Home Victims Reach a $56 Million Settlement

The Families of Holyoke Soldiers Home Victims Reach a $56 Million Settlement

Massachusetts has agreed to pay $56 million to settle a class-action lawsuit brought by the families of veterans who died or [Read More...]
The Wife of a Missouri Pedestrian Killed by a Motorist Wins $10 Million

The Wife of a Missouri Pedestrian Killed by a Motorist Wins $10 Million

A woman who hit and killed a pedestrian in Columbia while she was talking on her phone and speeding has been ordered to pay $[Read More...]
Can You Sue for Emotional Distress?

Can You Sue for Emotional Distress?

Victims of employment accidents, slip and fall accidents, and car accidents can suffer not only physically but also emotiona[Read More...]

#LegalNews

@@TheNTLtop100

Contact Us | Terms of Use | Privacy Policy

Attorney information and content provided on this website is provided for the benefit of members of The National Trial Lawyers and as a public service by Legal Associations Management, Inc. The website and all data are the property of Legal Associations Management, Inc. Data, including without limitation attorney information and content, on the site may not be mined, sold, or used commercially for any purpose without the explicit written consent of Legal Associations Management, Inc. This site may not be accessed by any automated program for extracting data for any use. By accessing and using the site you agree that you will not develop, support or use software, devices, scripts, robots, or any other means or processes (including crawlers, browser plug-ins and add-ons, or any other technology) to scrape data or otherwise copy profiles and other data. Unauthorized use or attempted unauthorized use of this system may subject you to both civil and criminal penalties.