A couple spent £32.5 million (approximately AUD 64.28 million) to purchase a luxury home in London, but after the house suffered a severe moth infestation, the court ruled that they could return the property and recover most of the purchase price. This case has raised concerns about the obligation to disclose information in house sales.
The mansion, named Horbury Villa, is located on a quiet, tree-lined street outside Notting Hill, and its magnificent Victorian architecture seemed to be the ideal residence in northwest London. However, hidden beneath the gorgeous exterior was a moth population lurking in the insulation, which caused serious damage to the mansion with its swimming pool, spa, gym, cinema, and wine cellar.
According to the judgment released on Monday, Iya Patarkatsishvili, the daughter of a Georgian billionaire, and her husband, Yevgen Hunyak, purchased the house from William Woodward-Fisher, a surveyor and residential real estate developer, in May 2019. The couple stated that after moving in, they found moths on their toothbrushes, towels, and wine glasses, and that the insects had also damaged their clothing, some of which had to be discarded.
Hunyak stated that he had to kill 10 to 35 moths every day, and that his family and cleaners were doing the same. The judge ultimately ruled in favor of the couple, finding that Woodward-Fisher had made "fraudulent misrepresentations" before selling the house and had "concealed the existence of a serious clothes moth infestation in the insulation of the house."
Judge Fancourt ruled that Woodward-Fisher had falsely answered three questions before selling the house, including claiming that he was unaware of any pest infestations or hidden defects in the property. According to the judgment, Woodward-Fisher's wife noticed the problem with clothes moths (Tineola Bisselliella) in early 2018 after major construction work was carried out and new insulation was installed. She then forwarded several emails about the infestation to her husband, Woodward-Fisher.
Fancourt noted in the judgment that he did not believe that Woodward-Fisher was "consciously trying to deceive the plaintiffs. He simply wanted to sell the house and move on." In addition to ordering Patarkatsishvili and Hunyak to be refunded most of the purchase price (less expenses for their period of residence), Fancourt also awarded them "substantial damages" and all expenses they incurred in eradicating the moths.