During the course of her ownership of the property at issue, which was located in Nyack, New York, Helen Ackley and members of her family had reported the existence of numerous poltergeists in the house.

[3] She claimed that when spring break arrived, Cynthia proclaimed loudly that she did not have to wake up early and she would like to sleep in; her bed did not shake the next morning.

About one week after the contracts of sale were fully signed, Stambovsky requested an in person meeting at the property with the seller directly to discuss the "ghosts".

Near the beginning of the majority opinion (three out of five justices) appears its most well-known conclusion: "having reported [the ghosts'] presence in both a national publication... and the local press... defendant is estopped to deny their existence and, as a matter of law, the house is haunted."

Notwithstanding these conclusions, the court affirmed the dismissal of the fraudulent misrepresentation action and stated that the realtor was under no duty to disclose the haunting to potential buyers.

In this case, "the most meticulous inspection and the search would not reveal the presence of poltergeists at the premises or unearth the property's ghoulish reputation in the community;" thus equity would allow Stambovsky the remedy of contract rescission against the seller, Ackley.

Application of the remedy of rescission, within the bounds of the narrow exception to the doctrine of caveat emptor set forth herein, is entirely appropriate to relieve the unwitting purchaser from the consequences of a most unnatural bargain.The opinion makes reference to a number of popular books and films featuring ghosts, including Shakespeare's Hamlet and the 1984 movie Ghostbusters and uses supernatural idioms throughout (e.g., "plaintiff hasn't a ghost of a chance", "I am moved by the spirit of equity", and "the notion [...] is a hobgoblin which should be exorcised from the body of legal precedent").

[5] The dissenting opinion argued that the doctrine of caveat emptor should be strictly applied and would affirm the trial court's dismissal of all of the actions.

Displeased by the majority's basis for its holding, the dissent said, "Finally, if the doctrine of caveat emptor is to be discarded, it should be for a reason more substantive than a poltergeist.

The case generated considerable publicity, and area real estate agents had between 25 and 50 potential buyers calling within a week of the court's decision.

Owners of the home in subsequent years include the singer-songwriter Ingrid Michaelson and the musician Matisyahu and filmmaker Adam Brooks.

The pair met with Helen and disclosed that the couple were likely the poltergeists of Sir George and Lady Margaret, who lived in the region in the 18th century.

[11] However, Merrill and Johnson reported that Sir George and Lady Margaret expressed that the spirits were not as fond of the new owners and were thinking of moving on.

[13] George died at an area hospital after heart surgery in 1978 at the age of 53, less than one year after the first accounts of paranormal activity appeared in Reader's Digest.