Seawane Greens, Inc. v. Bailey

The plaintiff builder sought a judgment for a declaration that the defendant buyers had breached their contract for the purchase of a dwelling to be constructed in the Village of Hewlett Harbor, and that it was entitled to retain the moneys paid under the contract as liquidated damages. The builder’s action, however, was discontinued at the trial, and the case continued on the basis of five counterclaims for rescission in the buyers’ answer.

The counterclaims alleged (a) fraud by the builder’s false representations as to the soil and bog conditions of the subject property; (b) untrue…