Complex Commercial Litigation
Business Torts
The claim requires a false statement in a business context, failure to exercise reasonable care, justifiable reliance, and pecuniary loss. Unlike fraud, no intent to deceive is required.
Liability extends to a limited class of intended users.
Alternative Names:
Negligent Misstatement|Careless Misrepresentation
Why it Matters?
The economic loss doctrine bars the claim where parties are in contractual privity in many jurisdictions, channeling the dispute to contract remedies, though application specifically to negligent misrepresentation varies substantially. For professionals including accountants and appraisers, the limited class rule confines liability to persons the maker intended to influence rather than all foreseeable readers of a report.
Frequently Confused with
Related terms
Frequently asked questions
Does the economic loss doctrine bar the claim?
Who may recover from a professional?
