Kannavos v. Annino
356 Mass. 42, 247 N.E.2d 708 (1969)
An apartment building advertised for rental income that the zoning code forbade
- In one lineEn una línea
- A seller who advertises a building as rental income property must disclose that the multi-family use violates zoning; a half-truth is a misrepresentation.Un vendedor que anuncia un edificio como propiedad de renta debe revelar que el uso multifamiliar viola la zonificación; una verdad a medias es misrepresentation.
- RuleRegla
- Bare nondisclosure is not actionable, but a party who makes a partial or ambiguous statement must disclose the facts necessary to make it not misleading (R.2d § 161(a)); buyers unfamiliar with local law may rely even though they could have discovered the truth.
- Why this case is herePor qué está aquí este caso
- The limit of Swinton from the same court: once a seller speaks (advertising the building as multi-family income property), she must not leave out the fact that makes the statement misleading (the use was illegal). Half-truths are assertions.
- Procedural posturePostura procesal
- Buyers sued to rescind the purchase of a building advertised as income property; the trial court dismissed; the Supreme Judicial Court reversed.
Facts
The seller converted a single-family house into apartments without a permit, in violation of zoning, and advertised and sold it as a multi-family income property. The buyers learned of the violation when the city moved to enforce.
Procedural posture
Suit to rescind; dismissed below; reversed.
Issue
Whether the seller’s silence about the zoning violation, after advertising the rental use, was actionable.
Holding
Yes. Having represented the building as income property, the seller was bound to disclose the fact that made that representation misleading.
Reasoning
Swinton protects silence; it does not protect half-truths. The buyers’ failure to check the zoning did not bar relief, since the seller’s statements invited reliance.
Rule (own words)
Once you start talking about the thing, you have to tell the part that makes your words true.
Say the answer out loud before revealing each part. Rate yourself honestly; the case comes back sooner when you miss.Di la respuesta en voz alta antes de revelar cada parte. Califícate con honestidad; el caso vuelve antes si fallas.
Panic kit: “Could you repeat the question, please?” · “Let me make sure I have the facts right: …” · “I'm not certain, but I'd argue … because …”Kit de pánico: “Could you repeat the question, please?” · “Let me make sure I have the facts right: …” · “I'm not certain, but I'd argue … because …”