No. 2--08--0061
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report as required by section 35 of the Disclosure Act (765 ILCS 77/35 (West 2006)). In their
disclosure report, the defendants stated that they were aware of flooding or recurring leakage
problems in the basement of the property. The defendants explained that there was "some seepage
in basement during heavy rains." On March 31, 2006, the parties closed on the contract and the
plaintiff took possession of the property. Following the closing, the plaintiff allegedly discovered
that there was a history of severe flooding in the basement of the property and elsewhere on the lot
of the property.
The plaintiff's original complaint, filed March 29, 2007, sought recovery for breach of
contract, breach of the Disclosure Act, and common-law fraud. The claims were premised on
allegations that the defendants failed to disclose that there was a history of flooding in the basement
of the property and elsewhere on the lot of the property. The defendants moved to strike the
plaintiff's original complaint pursuant to section 2--615 of the Code (735 ILCS 5/2--615 (West
2006)), arguing that the complaint failed to state causes of action for breach of contract, breach of
the Disclosure Act, and common-law fraud. On June 27, 2007, the trial court dismissed with
prejudice the plaintiff's claims for breach of the Disclosure Act and common-law fraud. The trial
court dismissed the plaintiff's claim for breach of contract without prejudice and granted the plaintiff
leave to file an amended breach-of-contract claim. Following a motion to reconsider, the trial court
reversed its ruling as to the claim for breach of the Disclosure Act and granted the plaintiff leave to
replead its claims for breach of contract and of the Disclosure Act.
On October 15, 2007, the plaintiff filed an amended two-count complaint. Count I, for
breach of contract, alleged that the defendants breached the real estate contract by failing to disclose
in their residential real property disclosure report the severe flooding problems in the basement of
