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Property Keyed to Rabin
Frickel v. Sunnyside Enterprises, Inc.
Facts
Sunnyside (Defendant) was a professional developer who always built their properties for themselves to own and manage rather than for sale.Nevertheless the Frickels (Plaintiffs), with the advice of counsel, were able to execute an agreement of sale for an apartment building that Defendant had constructed to provide income during their retirement. The contract stipulated that the Plaintiffs fully inspected the property and that neither Defendant nor its successors or assigns could be held to any covenant respecting the condition of the building. A few years after the sale, Plaintiffs discovered that the building’s foundations were inadequate and improperly designed for the soil on which it was built, even though Defendant built it to the exact specifications demanded by the city. The defective construction would cost $330,000 to repair; otherwise the foundation would fail in eight or nine years.
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