Rescission and Damages for Fraudulent Concealment of Latent Defects

A purchaser sued a seller for latent defects in a property, claiming the seller had fraudulently concealed the defects, and sought rescission of the sale and damages; the lower court, finding the seller's knowledge of the defects to be established, upheld the rescission but limited the damages to the restitution of the sale price, excluding compensation for damages due to eviction. The highest court quashed the decision, reasoning that a seller's proven fraud concerning latent defects not only justifies the rescission of the sale but also obligates the seller to compensate the buyer for all resulting damages, including those related to the eviction from the property, as the seller's bad faith removes the protection afforded by the legal limitation on liability for latent defects.