Section 3.7.20 Negligent Misrepresentation Claims

• Library: Construction Law Practice Manual 3rd Edition 2016

§ 3.7.20 Negligent Misrepresentation Claims

In Donnelly Constr. Co. v. Oberg/Hunt/Gilleland,¹⁷⁷ the Arizona Supreme Court allowed a contractor to sue an architect in tort, despite their lack of contractual privity, because the architect’s defective plans and specifications omitted work the contractor should have included in its bid. The court allowed a cause of action for negligent misrepresentation based on RESTATEMENT (SECOND) OF TORTS § 552 because the architect was paid for its services and the contractor detrimentally relied on the architect’s plans in preparing an estimate of costs for the project.

This cause of action is not a strict liability claim. As previously noted, Arizona’s courts have held that a professional’s work product can be inaccurate or imperfect without...