Court Allows Rescission Claims Despite 'Conscious Ignorance'

PHOENIX - Homebuyers who ignored their inspector's recommendation to test for mold because of assurances by the parties' mutual real estate agent cannot rescind their condominium purchase for mutual mistake but may still pursue contract and other claims, an Arizona appellate court has decided. DeLuca, et al. v. McMahon, et ux., No. 1 CA-CV 09-0140 (Ariz. Ct. App., Div. 1).

In an unpublished opinion issued on Feb. 25, the Arizona Court of Appeals, Division One, reversed and reinstated the buyers' rescission claims based on breach of contract, negligent misrepresentation and consumer fraud.

Plaintiffs Lori DeLuca, Jo-Ellen Doorn and Cheryl Kaminski …