Justice Francesca Connolly
Plaintiffs buyers alleged causes of action for breach of contract and fraudulent inducement against defendants. The parties effectuated a contract for the sale of a laundromat in the subject premises. Yet, plaintiff was unaware the leased premises was located in a building in imminent danger of being foreclosed upon, while seller testified he knew for months, but failed to disclose, that the building was in danger of foreclosure. Plaintiffs sought to void the contract and note, requesting a remedy conditioning the transfer of the business from plaintiffs to defendants upon defendants repayment of the $50,000 paid at closing, among other money damages. The court found based on defendants’ fraudulent inducement and material breach of the contract, same was rescinded, noting also defendant Gladstein abused the privilege of doing business in the corporate form, thus could not use it as a shield to protect himself from personal liability. It excused plaintiffs from further performance under the contract, entitling them to a return of the down payment and reimbursement of expenses paid that were incurred by defendants before closing. Also, plaintiffs may continue to own and operate the business until defendants complied with the restoration order.
