Stambovsky v. Ackley
Encyclopedia
| Stambovsky v. Ackley | |||||
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 Seal of New York Seal of New York The state seal of New York features the state arms surrounded by the words "The Great Seal of the State of New York." A banner below shows the New York State motto .... New York Supreme Court, Appellate Division, First Department |
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| Decided July 18, 1991 | |||||
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| Main Holding | |||||
| Seller who had undertaken to inform the public at large about the existence of poltergeists on the premises to be sold was estopped to deny existence of poltergeists on the premises, so the house was haunted as a matter of law and seller must inform the purchaser of the haunting. | |||||
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| Case opinion | |||||
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Stambovsky v. Ackley, 169 A.D.2d 254
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(NY App. Div. 1991), is a case in the New York Supreme Court, Appellate Division
New York Supreme Court, Appellate Division
The Supreme Court of the State of New York, Appellate Division is the intermediate appellate court in New York State. The Appellate Division is composed of four departments .*The First Department covers the Bronx The Supreme Court of the State of New York, Appellate Division is the intermediate...
, that held that a house, which the owner had previously advertised to the public as haunted
Haunted house
A haunted house is a house or other building often perceived as being inhabited by disembodied spirits of the deceased who may have been former residents or were familiar with the property...
by ghost
Ghost
In traditional belief and fiction, a ghost is the soul or spirit of a deceased person or animal that can appear, in visible form or other manifestation, to the living. Descriptions of the apparition of ghosts vary widely from an invisible presence to translucent or barely visible wispy shapes, to...
s, was legally haunted for the purpose of an action for rescission
Rescission
In contract law, rescission has been defined as the unmaking of a contract between parties. Rescission is the unwinding of a transaction. This is done to bring the parties, as far as possible, back to the position in which they were before they entered into a contract .-In court:Rescission is an...
brought by a subsequent purchaser of the house. Because of its unique holding, the case has been frequently printed in textbooks on contracts and property law
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
and widely taught in U.S. law school
Law school in the United States
In the United States, a law school is an institution where students obtain a professional education in law after first obtaining an undergraduate degree.Law schools in the U.S...
classes, and is often cited by other courts.
Facts and prior history
During the course of her ownership of the propertyReal property
In English Common Law, real property, real estate, realty, or immovable property is any subset of land that has been legally defined and the improvements to it made by human efforts: any buildings, machinery, wells, dams, ponds, mines, canals, roads, various property rights, and so forth...
at issue, which was located in Nyack, New York
Nyack, New York
Nyack is a village in the towns of Orangetown and Clarkstown in Rockland County, New York, United States, located north of South Nyack; east of Central Nyack; south of Upper Nyack and west of the Hudson River, approximately 19 miles north of the Manhattan boundary, it is an inner suburb of New...
, Helen Ackley and members of her family had reported the existence of numerous poltergeist
Poltergeist
A poltergeist is a paranormal phenomenon which consists of events alluding to the manifestation of an imperceptible entity. Such manifestation typically includes inanimate objects moving or being thrown about, sentient noises and, on some occasions, physical attacks on those witnessing the...
s in the house. Ackley had reported the existence of ghosts in the house to both Reader's Digest
Reader's Digest
Reader's Digest is a general interest family magazine, published ten times annually. Formerly based in Chappaqua, New York, its headquarters is now in New York City. It was founded in 1922, by DeWitt Wallace and Lila Bell Wallace...
and a local newspaper on three occasions between 1977 and 1989, when the house was included on a five-home walking tour of the city. She recounted to the press several instances in which the poltergeists interacted directly with members of her family. She claimed that grandchildren received "gifts" of baby rings, all of which suddenly disappeared later. She also claimed that one ghost would wake her each morning by shaking her bed. She claimed that when spring break arrived she proclaimed loudly that she did not have to wake up early and she would like to sleep in; her bed did not shake the next morning.
Neither Ackley nor her realtor, Ellis Realty, revealed the haunting to Jeffrey Stambovsky before he entered a contract to purchase the house in 1989 or 1990. Stambovsky made a $32,500 downpayment on the agreed price of $650,000 for the house. Stambovsky was from New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and was not aware of the folklore of Nyack, including the widely known haunting story.
When Stambovsky learned of the haunting story, he filed an action requesting rescission of the contract of sale and for damages
Damages
In law, damages is an award, typically of money, to be paid to a person as compensation for loss or injury; grammatically, it is a singular noun, not plural.- Compensatory damages :...
for fraudulent misrepresentation
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
by Ackley and Ellis Realty. Stambovsky did not attend the closing
Closing (real estate)
Closing is the final step in executing a real estate transaction.The closing date is set during the negotiation phase, and is usually several weeks after the offer is formally accepted. On the closing date, the parties consummate the purchase contract, and ownership of the property is transferred...
which caused him to forfeit the downpayment (although he was then not obligated to buy the house). A New York Supreme Court
New York Supreme Court
The Supreme Court of the State of New York is the trial-level court of general jurisdiction in thestate court system of New York, United States. There is a supreme court in each of New York State's 62 counties, although some smaller counties share judges with neighboring counties...
(trial court) dismissed the action, and Stambovsky appealed.
Majority opinion
Near the beginning of the majority opinion (three out of five justices) in its most well-known conclusion: "having reported [the ghosts'] presence in both a national publication... and the local press... defendant is estopped to deny their existence and, as a matter of law, the house is haunted." The court noted that regardless of whether the house was truly haunted or not, the fact that the house had been widely reported as being haunted greatly affected its value.Notwithstanding these conclusions, the court affirmed the dismissal of the fraudulent misrepresentation action and stated that the realtor was under no duty to disclose the haunting to potential buyers. Thus, no damages were available to Stambovsky because New York, at the time, adhered to property law doctrine of caveat emptor
Caveat emptor
Caveat emptor is Latin for "Let the buyer beware". Generally, caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.- Explanation :...
.
The appellate court reversed the trial court's decision regarding the rescission action, however, as it went on to note that "haunting" was not a condition that a buyer or potential buyer of real property can and should be able to ascertain upon reasonable inspection of the property. According to the court, though the doctrine of caveat emptor would normally operate to bar a rescission action, causing seller to have no duty to disclose information about the property to be sold (but also preventing the seller from affirmatively misrepresenting the condition of the property), the doctrine, in a merged law and equity system, can be modified to do justice to the parties. In this case, "the most meticulous inspection and the search would not reveal the presence of poltergeists at the premises or unearth the property's ghoulish reputation in the community," thus equity would allow Stambovsky the remedy of contract rescission against the seller, Ackley. The court held:
- Where, as here, the seller not only takes unfair advantage of the buyer's ignorance but has created and perpetuated a condition about which he is unlikely to even inquire, enforcement of the contract (in whole or in part) is offensive to the court's sense of equity. Application of the remedy of rescission, within the bounds of the narrow exception to the doctrine of caveat emptor set forth herein, is entirely appropriate to relieve the unwitting purchaser from the consequences of a most unnatural bargain.
The opinion makes reference to a number of popular books and films featuring ghosts, including Shakespeare's
William Shakespeare
William Shakespeare was an English poet and playwright, widely regarded as the greatest writer in the English language and the world's pre-eminent dramatist. He is often called England's national poet and the "Bard of Avon"...
Hamlet
Hamlet
The Tragical History of Hamlet, Prince of Denmark, or more simply Hamlet, is a tragedy by William Shakespeare, believed to have been written between 1599 and 1601...
and the 1984 movie Ghostbusters
Ghostbusters
Ghostbusters is a 1984 American science fiction comedy film directed by Ivan Reitman and written by Dan Aykroyd and Harold Ramis. The film stars Bill Murray, Dan Aykroyd, Sigourney Weaver, Harold Ramis, and Rick Moranis and follows three eccentric parapsychologists in New York City, who start a...
and uses various words meaning "ghost" descriptively throughout (e.g., "in his pursuit of a legal remedy for fraudulent misrepresentation against the seller, plaintiff hasn't a ghost of a chance", "I am moved by the spirit
Spirit
The English word spirit has many differing meanings and connotations, most of them relating to a non-corporeal substance contrasted with the material body.The spirit of a living thing usually refers to or explains its consciousness.The notions of a person's "spirit" and "soul" often also overlap,...
of equity", and "the notion that a haunting is a condition which can and should be ascertained upon reasonable inspection of the premises is a hobgoblin
Hobgoblin
Hobgoblin is a term typically applied in folktales to describe a friendly but troublesome creature of the Seelie Court.The most commonly known hobgoblin is the character Puck in Shakespeare's A Midsummer Night's Dream. Puck, however, is only another name given to a much older character named Robin...
which should be exorcised from the body of legal precedent").
Dissenting opinion
The dissenting opinion argued that the doctrine of caveat emptorCaveat emptor
Caveat emptor is Latin for "Let the buyer beware". Generally, caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.- Explanation :...
should be strictly applied and would affirm the trial court's dismissal of all of the actions. Displeased by the majority's basis for its holding, the dissent said, "Finally, if the doctrine of caveat emptor is to be discarded, it should be for a reason more substantive than a poltergeist. The existence of a poltergeist is no more binding upon the defendants than it is upon this court."
Epilogue
The case generated considerable publicity. Among the new prospective buyers to the house at 1 LaVeta Place on the Hudson RiverHudson River
The Hudson is a river that flows from north to south through eastern New York. The highest official source is at Lake Tear of the Clouds, on the slopes of Mount Marcy in the Adirondack Mountains. The river itself officially begins in Henderson Lake in Newcomb, New York...
was Kreskin
Kreskin
The Amazing Kreskin , born George Joseph Kresge, is a mentalist who became popular on North American television in the 1970s...
(who was interested in it because of the haunted claim). Ackley sold the house to another buyer and moved to Florida in 1991. In 1993 Paranormal
Paranormal
Paranormal is a general term that designates experiences that lie outside "the range of normal experience or scientific explanation" or that indicates phenomena understood to be outside of science's current ability to explain or measure...
researchers Bill Merrill and Glenn Johnson with the aid of Helen Ackley said they claimed to have contacted the ghosts from Portland, Oregon
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
. The ghosts were reported to have told them that it wasn't as much fun haunting the house without Helen. They wrote their findings in the book Sir George The Ghost Of Nyack - Bill Merrill & Glenn Johnson - Deer Publishing Co. (1995) - ISBN 1883832055. Helen Ackley died in 2003. There have not been public reports of hauntings in recent years.
External links
Stambovsky v. Ackley Case Brief on Google ScholarStambovsky v. Ackley Case Resources from ContractsProf Blog
Stambovsky v. Ackley Case Brief at Lawnix.com