£32.5 Million Mansion, Moths, and Misrepresentation: A Cautionary Tale for Sellers

In the landmark case of Iya Patarkatsishvili and Yehven Hunyak v William Woodward-Fisher, the Claimants (Iya Patarkatsishvili and Yehven Hunyak) purchased their luxurious mansion from the Defendant in May 2019.

However, behind its luxurious façade, the purchasers were unaware of the property’s moth infestation.

Unbeknownst to them, the Defendant had instructed specialists to assist them with this issue before selling the property.

The experts had prepared ‘at least two reports’ detailing the infestation, and the remedial works were anticipated to be approximately £10,000.

This information was not disclosed to the Claimants when responding to three specific pre-contract enquiries, including whether the property had ever been affected by any issues including but not limited to a vermin infestation.

In fact, the Defendant claimed that they were not aware of any pests or hidden defects.

What was the outcome of the Defendant’s dishonesty?

It was two-fold:

1. In the short term, the Claimants moved into the property and were faced with a ‘severe moth infestation.’[1] Despite setting 400 traps, the pests ruined their clothing, wine and toothbrushes. At the peak of the infestation, the Claimants were ‘swatting up to 100 insects daily.’ [2]
2. In the long term, the Claimants pursued the Defendant in the High Court for rescission of the sale contract, repayment of the full purchase price plus interest and damages for the losses that were caused by their ‘fraudulent misrepresentations.’ Rescission means the cancellation of the contract and therefore, the ability to hand the property back to the seller and return the full purchase price.

What was the outcome of their claim?

Substantial damages and rescission to account for the losses attributed to the purchase (including stamp duty land tax, and legal fees).

The exact terms of relief will be determined at a future hearing.

This landmark case is a stark warning to sellers involved in property transactions and the potential repercussions of making ‘fraudulent misrepresentations’ when completing the protocol forms and responding to the pre-contract enquiries.