Gavora, Inc. v. City of Fairbanks

Summary

The Alaska Supreme Court affirmed judgment for the City of Fairbanks in Gavora's claims arising from undisclosed groundwater contamination at property Gavora purchased from the City. The court held that the parties' arm's-length commercial transaction created no duty to disclose under the relevant omission-based misrepresentation provisions, and that Gavora could have discovered the contamination through ordinary inquiry. The court also rejected liability for a dangerous condition because Gavora had reason to know of the contamination and the physical harm occurred before purchase, and it upheld rejection of Gavora's implied-covenant and post-trial arguments.