Negligent misrepresentation is when someone provides false information to another person, either intentionally or unintentionally, without taking reasonable care to ensure the accuracy of the information. It occurs when someone inadvertently gives incorrect information that causes harm or financial loss to another person.
Full definition
The court determined that real estate professionals can be liable for
negligent misrepresentation if they fail to exercise reasonable care in making representations to clients.
Parties can only recover «benefit - of - the - bargain» damages for intentional misrepresentations, not
negligent misrepresentations when there is not a special statute otherwise regulating the conduct.
A 1996 Kansas case had a very favorable outcome for real estate practitioners, holding that they «may protect themselves from
negligent misrepresentation actions by disclaiming knowledge of the property's defects and having a seller acknowledge such disclaimer.»
Plaintiffs also
alleged negligent misrepresentation based on: (1) defendant's discouraging plaintiff from going down to the basement where her son was drinking by commenting that it was hot and smoky, and (2) defendant's failure to tell plaintiff that there was a keg in the basement from which her son could drink beer
However, the court found that the Smileys could
bring negligent misrepresentation allegations against the inspector and so reversed the trial court on these allegations.
Claims against C.R. Bard and Cook Medical include various forms of negligence, ranging
from negligent misrepresentation and design defects, to breach of implied warranty.
[4] The Plaintiffs are suing the federal government for damages for
negligent misrepresentation arising from the government's failure to advise them of the significant, identifiable risks they were facing by resigning from the public service to join Loba — risks that related to the government's assessment of the legitimacy of the Loba arrangements...
In the unusual bonus claim case of Herbert v JP Morgan (2012), he successfully defended the investment bank against a High Court, Queen's Bench Division claim by an banker for a bonus based on an alleged
negligent misrepresentation during the recruitment process.
Normally, a lawsuit will involve fraudulent or
negligent misrepresentation where the seller knew of an issue but deliberately hid it from the buyer or failed to disclose it when they should have.
Partnership Disputes Small Business Litigation LLC Litigation Business Torts Breach of Contract Fraud Fiduciary Duty Fraudulent
Misrepresentation Negligent Misrepresentation Tortious Interference Shareholder Derivative Claims Duty of Good Faith and Fair Dealing
The Nunezes also charged the licensees
with negligent misrepresentation, alleging that one of the sales associates had told them it was «a waste of time» to have the property inspected since the sellers had no plans to put money into the property.
The Buyer argued that the owner and the Listing Broker were liable for fraud and / or
negligent misrepresentation because the picture used in the MLS showed the wrong property.
The law provides that a third party can bring
negligent misrepresentation allegations against professional individuals or entities that provide false information due to lack of competence or failure to exercise proper care in preparing information that a third party is foreseeably reliant upon.
In short, held the court, the count
of negligent misrepresentation against Broker could move forward, as Client's reliance on Broker's prior experience advising on that kind of transaction was reasonable.
The court adopted the Restatement language and held that the State of Kansas recognized a cause of action for
negligent misrepresentation by a real estate agent who induced a buyer to purchase real estate.
Negligent misrepresentation occurs when sales associates say something they believe to be true based on what the client, often the seller, says — the water heater is five years old, for example — but the statement turns out to be false.
The plaintiff also claimed a longer notice period because the defendant, allegedly, had induced the plaintiff to leave secure employment by making fraudulent or
negligent misrepresentations about the job security that the plaintiff would enjoy.
However, the court found that the Purchasers could
bring negligent misrepresentation allegations against the Inspector and so reversed the trial court on these allegations.
In a case previously summarized in The Letter of the Law, a federal court has considered whether a buyer's allegations could proceed against a listing broker for
negligent misrepresentation when the listing broker failed to disclose the presence of lead paint on the property.
According to Judge Pauley, proof of
negligent misrepresentation requires a material false statement on which a party reasonably relies to its detriment, and the existence of a duty «as a result of a special relationship» to give correct information.
Phrases with «negligent misrepresentation»