Ackmann V. Merchants Mortgage & Trust Corp‪.‬

The plaintiffs were awarded judgment against Merchants Mortgage & Trust Corporation on a jury verdict in Arapahoe County District Court. The judgment cancelled their obligations on promissory notes given in partial payment for lots in the Stagecoach land development project near Steamboat Springs and awarded them damages in the respective principal amounts each had paid on the notes. The Colorado Court of Appeals reversed, holding that the evidence was insufficient to support the plaintiffs' claim that they had been induced to execute the notes by fraudulent concealment of material facts by Woodmoor Corporation, the seller of the lots. Ackmann v. Merchants Mortgage & Trust Corp., 44 Colo. App. 345, 619 P.2d 501 (1980). We granted certiorari and now reverse the decision of the court of appeals because that court applied an incorrect standard in delineating the developer's duty of disclosure.