The appellants were sued by the appellees for alleged statutory fraud and alleged negligent misrepresentation in connection with a proposed sale of commercial property. Appellees did not exercise due diligence by assuming that the nonpayment of rent was for a specific purpose and that the ADA issues were minor without inquiring further into the situation. The alleged misrepresentations raised by appellees fail to meet the second element of statutory fraud of being false either directly or through a failure of required disclosure. The alleged misrepresentations in support of appellees' claim for negligent misrepresentation were not false. The trial court's judgment is reversed and rendered that appellees take nothing. El Paso Court of Appeals, No. 08-11-00014-CV, 08-14-2013.
Tukua Investments, LLC v. Spenst
Tex. App. Dist. 8
August 14, 2013