UCC-1 as substitute for Mechanics’ Lien on a CoopThomas Tripodianos
May 14, 2009 — 394 views
Question. Prior to closing on their home, the Purchasers hired an Engineer who performed an inspection of the house. The inspection revealed the presence of termites in the crawl space in front of the house. In his inspection report, the Engineer noted, in addition to the termite condition, among other things, the boiler was in "good shape, showing no sign of leaking activity." In accordance with certain provisions in the Rider attached to the Contract of Sale, upon being advised of the results of the inspection, the Seller hired a Pest Control Company to treat the termite condition, which it did by spraying in the crawl space and placing termite baits around the perimeter of the house. After taking possession of the premises, the Purchasers discovered extensive termite damage throughout the house and a leak in the oil line feeding the boiler tank, resulting in contamination of the soil under the house, (which ultimately had to be removed by a specialty company, monitored by the Department of Environmental Conservation). The Purchasers would like to sue the Pest Control Company, the Seller, and the Engineer for breach of contract with regard to all, negligence with regard to the Engineer and the Pest Control Company, and fraud in the inducement with regard to the Seller. May they do so?