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Thompson vs Cloud

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United States Court of Appeals,First Circuit. Michael THOMPSON, Plaintiff, Appellant; Cross–Appellee, v. Nancy CLOUD; Michael Miles, Defendants, Appellees; Cross–Appellants. Nos. 13–1120, 13–1121. Decided: August 20, 2014 Before SELYA, STAHL and LIPEZ, Circuit Judges. Damon M. Seligson, with whom Dinicola, Seligson & Upton, LLP was on brief, for appellant, cross-appellee. Christopher R. Largay, with whom Largay Law Offices, P.A. was on brief, for appellees, cross-appellants. After Michael Thompson purchased a multimillion-dollar oceanfront property in Bar Harbor, Maine from Nancy Cloud and Michael Miles, he discovered a number of problems with the property that required significant expenditures to repair. He brought this suit to recover damages for those repairs, alleging, inter alia, breach of contract, fraud, and negligent misrepresentation.1 The district court entered summary judgment for the defendants, holding that Maine's implied warranty of habitability did not apply under the circumstances of this case, and that defendants had no duty of disclosure. The district court also entered judgment on the record for the plaintiff on the defendants' counterclaim for attorney's fees. Plaintiff now appeals and defendants cross-appeal. We affirm the district court's decisions on all counts, albeit employing slightly different reasoning. I. In October 2008, appellant Thompson purchased a home in Bar Harbor (called “Seascape”) from appellees Miles and Cloud for $2.9 million. Miles and Cloud originally purchased the land for a home in 2000 and subsequently had Seascape constructed there. The pair lived at Seascape during the summer seasons between 2002 and 2004, and then listed the property for sale. While the property was listed, Miles and Cloud rented it out on a seasonal basis, but otherwise (in their own words) “had very little to do with Seascape .” Seascape was

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