Warren H. Smith, Petitioners v. National Resort Communities, Inc., Respondent

Summary

The Texas Supreme Court reversed the trial court and Court of Civil Appeals, granting rescission of the Smiths' contract to purchase a lakefront lot and awarding restitution of the purchase price with interest and special damages. The Court held that the developer had a duty to disclose the material fact of the LCRA overflow easement, that silence was misleading, and that the statutory statements provided no adequate notice. Justice McGEE dissented, arguing the appellate judgment should be affirmed.