STRAWN V. CANUSO
657 A.2d 420 (1995)
NATURE OF THE CASE: Canuso (Ds) appealed a judgment, which reversed the summary judgment
rendered for Ds in Ps', home buyers, action for fraud, and negligent misrepresentation for
failure to disclose that the homes had been built near an abandoned hazardous-waste dump.
FACTS: Over 150 families, Ps, purchased new homes from Ds. Ps later discovered that all
their homes had been built near a hazardous-waste dump. Twenty-six P-families filed a
class-action suit on behalf of all of the purchasers of the homes in the development sold by
Ds. Ps base their claims on common-law theories of fraud and negligent misrepresentation and
the New Jersey Consumer Fraud Act. Ps contend that between 1966 and 1978, large amounts of
hazardous materials and chemicals were dumped at the Buzby Landfill. Toxic materials escaped
contaminating the groundwater and air. The federal Environmental Protection Agency
recommended that the site be considered for a Superfund cleanup. Ps allege that ds knew of
the Buzby Landfill before they considered the site for residential development and that,
although specifically aware of the existence and environmental hazards of the landfill, they
failed to disclose those facts to Ps when they purchased their homes. The trial court denied
class certification, finding that plaintiffs had failed to establish the predominance of
common issues sufficient to warrant certification. D moved for summary judgment against the
individual Ps. The trial court ruled that D did not owe a duty to prospective purchasers to
disclose conditions of the property but that the seller could be liable for affirmative
misrepresentations. The trial court granted summary judgment dismissing all of the claims of
seven families who did not assert affirmative misrepresentations in their complaint. The
seven plaintiff-families sought leave to appeal to the Appellate Division, which was
granted. The Appellate Division reversed the decision of the trial court; the builders and
brokers of the development had a duty to disclose to potential buyers the existence of the
nearby, closed landfill. The court also concluded that class certification should have been
granted to redress the common legal grievance asserted by plaintiffs. Ds appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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