Bar-Del, Inc. v. Oz, Inc.

SCHRODER, Judge:

This case questions whether a mistake in the zoning classification is a mistake of law or a mistake of fact.

The appellants agreed to sell and the appellee agreed to buy a tavern and accompanying licenses located at 4133 Bardstown Road, in Louisville. After the down payment was made, the purchaser applied for a permit to remodel when it discovered that the property was not zoned for a tavern use, even though the sellers had operated a tavern at said location for a number of years. 1 The property was zoned C-l while a tavern use requires a C-2 zone.

The buyers sought rescission…