Herman Homes, Inc. v. Smith

Ruffin, Judge.

Herman Homes, Inc. was the builder of several homes in the Sierra Highlands subdivision. After Johnnie Smith and other individuals purchased homes in the community (collectively “the homeowners”), they discovered drainage problems on their property. The homeowners sued Herman Homes, alleging, inter alia, that the builder knew of the drainage problems, yet fraudulently induced them to enter into their purchase agreements by failing to disclose the defects. Herman Homes moved for summary judgment on the fraudulent inducement claims, arguing that because the purchase agreements…