CHAPTER 8 - 8-8 NEGLIGENT MISREPRESENTATION

• Jurisdiction: United States

8-8 Negligent Misrepresentation

Claims of negligent misrepresentation often accompany claims of fraud.

"Traditionally, an action for negligent misrepresentation requires the plaintiff to establish (1) that the defendant made a misrepresentation of fact, (2) that the defendant knew or should have known was false, and (3) that the plaintiff reasonably relied on the misrepresentation, and (4) suffered pecuniary harm as a result."¹⁴⁶ "The test of negligent misrepresentation involves the breach of a duty to exercise reasonable care in communicating information upon which another may reasonably be expected to rely in conducting their affairs. Under this principle, one making a representation or communication may even believe [the] representation or communication to be true, but because of his lack of reasonable care in making that representation or communication it is in fact false."¹⁴⁷

"Although the general rule is that a misrepresentation must relate to an existing or past fact, there are exceptions to this rule, one of which is that a promise to do an act in the future, when coupled with a present intent not to fulfill the promise, is a false representation."¹⁴⁸ "Whether evidence supports a claim of . . . negligent misrepresentation is a question of fact . . ."¹⁴⁹

The Supreme Court stated: "One who, in the course of his [or...