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Business Assoctiations Keyed to Gabalson, 3rd Ed.
Appletree Square I Limited Partnership v. Investmark, Inc.
Citation:
494 N.W.2d 889 (1993)Facts
Appletree Square I Limited Partnership was formed in 1981 to purchase and operate a 15-story office building called One Appletree Square. The partnership was organized under the 1976 Uniform Limited Partnership Act. The case involves two transactions: the building sale in 1981 and the acquisition of a 25% interest in the partnership in 1985. During negotiations for the 1981 sale, the purchasers requested “any information that you have not already sent to us which would be material to our investors’ participation in this development.” The sellers responded by telling purchasers to inspect the building and records themselves. In 1986, the purchasers discovered that the building’s structural steel had been coated with asbestos-based fireproofing, which was deteriorating and releasing fibers. The estimated cost of abatement was ten million dollars. The purchasers sued the sellers for failing to disclose the presence and danger of asbestos.
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