Seller's Disclosure Fraud - Underground Tanks and Contamination - WWYD

[Keith Jones]

I recently purchased a home where the seller disclosed that there was a underground heating oil tank that had been decommissioned - standard question on OR state disclosure form.  They then went to state "no contamination found" in the addendum to the SD.   After purchasing - we discovered there was contamination over the state thresholds - which required additional studies (soil vapor, etc). The contractor determined no further action was needed (given risk factors) and submitted their report to the State.  The State provides an automated letter stating that they received the report and show the file as closed. 

According to my attorney, I have a case for fraud against the seller.    Damages would likely be the cost to excavate contaminated soil.  

Curious what others think.  Would you let it slide considering that the heating oil tank has been properly decommissioned and the study complete?  Or pursue fraud given the sellers false statement and my legal obligation to disclose to future buyers?