Respondents tell panel the purchase agreement's as-is clause bars contract claim; appellant says exceptions apply when seller had actual knowledge

Respondents urged the appellate panel to uphold summary judgment on the contract claim by emphasizing the purchase agreement's as-is clause and contending the settlement agreement's general no-knowledge language does not constitute a specific warranty. "The as is clause is disclaiming everything about the property," Victoria Molina told the court, arguing the clause is a bargained-for risk allocation that a general no-knowledge statement does not override.

Appellant's counsel John Yip responded that the as-is clause does not apply where the seller had actual knowledge of an undisclosed defect and that controlling authorities permit such an exception. Yip cited Sloan v. Thompson and Olmstead to argue the as-is clause cannot be used to defeat an express warranty or a representation tied to actual knowledge. The judges questioned how to reconcile the as-is bargain with an express representation in a later settlement, and whether, as a legal matter, the record permits summary judgment on that issue. The court took the case under advisement.