Morgan & Morgan’s Business Trial Group partner Mitchell Schermer has filed a lawsuit in Pinellas County alleging fraud and breach of contract against the former co-owners of Bay Street Inn, a bed and breakfast.

The lawsuit alleges that defendants David Ambler and Margaret Auer sold the Bay Street Inn, located in St. Petersburg’s Old Northeast neighborhood, for $1.8 million in May, while concealing significant flaws with the property’s main building. These alleged issues include roof damage that led to rampant water intrusion, causing black mold to flourish and rot the interior of the home, according to the complaint.