This section contains the nature of the case and procedural background.

Reed (P) purchased a home from King (D). Neither D nor his real estate agents told P that a woman and her four children were murdered there ten years earlier. P learned of the tragedy after the closing from a neighbor who was told not to reveal the information prior to closing. P sued seeking rescission and damages. D and the agents successfully demurred to P's complaint, and P appealed. It was established that D and the agents, in fact, knew of the murders and even enlisted the help of the neighbor in asking not to inform P of that event. D and his agents knew that the murders materially affected the value of the house when they listed it for sale. P paid $76,000, but the house was only worth $65,000 because of its past.

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