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Ollerman (P) bought a vacant lot from O'Rourke, Co., Inc. (D) to build a house. While excavating the lot, a well was uncapped and water was released. The complaint alleged that D was experienced in real estate, that it owned and subdivided the lots in the area where P's lot was located, and that D knew of the underground well, and in order to induce P to buy, failed to disclose the fact that a well was on the land. P's complaint stated that P was a stranger to the area, was inexperienced in real estate transactions, and that he did not know of the existence of the well which was hidden from view under the land surface. P alleged that he incurred additional expenses for water control of $2,722.04 and that the sum of $10,575 was 'incurred with the builder due to change in plans necessitated by said condition and to correct the same.' P paid $12,600 for the lot. D moved to dismiss for failure to state a claim upon which relief can be granted, which was overruled. D appealed.

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