When IM Kapco, a home inspection company, failed to uncover certain structural defects in a home Edward Ryan wanted to buy, the company was sued for "gross negligence."
After the Nassau County Supreme Court dismissed the case, Ryan appealed.
Since Kapco's errors weren't intentional, and the inspection hadn't been recklessly performed, the Appellate Division, Second Department, was of the view that the "gross negligence" claim couldn't survive. (Ryan's recovery was limited to the $550 fee paid for the inspection, as provided by the parties' agreement.)
Kapco capped its liability.
To view a copy of the Appellate Division's decision, please use this link: Ryan v. IM Kapco, Inc.