Question: Case name: Issue Statement: Analysis: Risk Reduction: Reasoning: Case - Epic Homes Inc. wanted to build a townhouse complex on two lots that had recently
Case name:
Issue Statement:
Analysis:
Risk Reduction:
Reasoning:
Case Epic Homes Inc. wanted to build a townhouse complex on two lots that had recently been joined. Epic Homes purchased the land, joined the lots, and had designs commissioned for the townhomes. All of this cost Epic just over million dollars. Unfortunately it turns out that the lots are in a flood zone and Epic cannot obtain insurance for any buildings erected there. The seller, Grand Holdings Inc., indicated in the land sale documents that they weren't aware of any issues with the land that would prevent obtaining insurance. Furthermore, the seller, Grand Holdings, falsified and sent a document to Epic from a fake insurance company stating that the land was insurable. Epic relied on Grand Holdings' representations when it purchased the land. Epic now wants to sue the seller of the land, Grand Holdings Inc.Cas
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