Pannone v. Grandmaison Case Brief Summary | Law Case Explained

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Pannone v. Grandmaison, 1990 WL 265273 (1990)
Every contract contains an implied promise that the contracting parties will perform in good faith. If the contract grants one party the discretion to back out of the deal, must that party exercise its discretion in good faith? That’s the question in Pannone versus Grandmaison.
Joseph Pannone contracted to buy a house from Raymond Grandmaison. The contract specified that the sale was contingent upon Pannone’s approval of the results of a home inspection, a termite inspection, and a radon-gas inspection. Pannone believed that he was particularly sensitive to radon, a naturally-occurring radioactive gas, because of his exposure to radiation during his military service in the Korean War.
The inspector who performed the radon inspection reported that the radon level in the house was within acceptable limits. According to the inspector, Pannone would be unlikely to find a house with a lower reading anywhere in the state. In fact, Pannone had never tested his current home for radon. Nonetheless, Pannone canceled the contract because of the radon level and demanded that Grandmaison return his deposit. Grandmaison refused.
Pannone sued Grandmaison in Connecticut Superior Court for return of the deposit, plus interest. After a bench trial, the trial court rendered its verdict.
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