Court Says Misrepresentation Doesn't Require Reasonable Reliance

MADISON, Wis. - Plaintiffs asserting a statutory claim of misrepresentation against home sellers don't have to prove reasonable reliance, the Wisconsin Supreme Court held May 28. Novell v. Migliaccio, et ux., No. 2005AP2852 (Wis. Sup. Ct.).

In affirming a decision by the Wisconsin Court of Appeals, the high court cautioned that while the issue of reliance is not an element of statutory misrepresentation, it may still be relevant in evaluating the claim.

Chad Novell sued former owners Anthony and Andrea Migliaccio after discovering water in the basement of his $172,000 home. He alleged that the Migliaccios failed to disclose prior …