B. Negligent Misrepresentation

• Library: South Carolina Damages (SCBar) (2009 Ed.)

B. Negligent Misrepresentation

Under South Carolina law, a plaintiff may bring an action in tort for negligent misrepresentation,⁷ which requires proof of the following elements:

(1) the defendant made a false representation to the plaintiff, (2) the defendant had a pecuniary interest in making the statement, (3) the defendant owed a duty of care to see that he communicated truthful information to the plaintiff, (4) the defendant breached that duty by failing to exercise due care, (5) the plaintiff justifiably relied on the representation, and (6) the plaintiff suffered a pecuniary loss as the proximate result of his reliance on the representation.⁸

Damages awarded for this tort are based "upon a negligently made false statement where a party suffers either injury or loss as a consequence of relying upon the misrepresentation."⁹

The South Carolina Supreme Court has adopted § 552 of the Restatement (Second) of Torts regarding causes of action for negligent misrepresentation.¹⁰ This tort is often seen in the real estate context, typically involving allegations of negligent...