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Stambovsky (P) bought a house from Ackley (D). D knew the house was haunted, but did not give this information to P. P then discovered that the house had a reputation for being haunted. D had perpetrated the rumor by having reported such occurrences to Reader’s Digest and the local press in 1977 and 1982. The home was also included in a local walking tour through Nyack. P wanted to have the contract rescinded, but the New York Supreme Court dismissed his complaint; P had no remedy at law. P appealed.

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