Universal Investment Co. v. Sahara Motor Inn, Inc.

OPINION

RICHMOND, Judge.

This is a suit on a promissory note received by appellant Universal Investment Co. as part payment in the sale of a Tucson motel. Sahara Motor Inn, Inc., the buyer, in its answer raised the affirmative defense of fraud and filed a counterclaim for rescission and damages based on fraudulent concealment. The trial court entered judgment that neither party take anything. Only the seller has appealed.

The determinative question is whether the seller had a duty to disclose the fact that a defect in the electrical system violated city code provisions, even though the buyer…