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Negligent misrepresentation

Define: Where a plaintiff acts to their financial detriment in reliance upon a statement of information or advice given by a defendant

Features of relationship: Speaker knows or ought to know: Trusted by recipient to give information recipient believes speaker has capacity to give The information is of a serious or business nature Speaker knew or ought to have known that recipient intended to rely on the information Reasonable for recipient to seek of accept and rely on the speakers advice or information

Duty is to take reasonable care – no need to have special skill

Establishing an action: Representation – identify all oral, written advice, information, opinion silence duty to correct Duty of care Identify relationship between pl and def more serious/formal, the more likely duty professional relationship not necessary but implies reliance

Breach of duty: Duty is not to mislead in giving advice or expressing an opionoin

Damage: Recognised at all factual causation scope of liability

Defences: Contributory negligence

Remedies: Compensatory damages Consequential damage Lost opportunity

Fraudulent misrepresentation (deceit)

= A false representation made by one, who either has knowledge of its falsity, or is reckless as to its truth, with the intention that the Pl should act on it, and which causes damage as a result
= A separate tort (and not a negligence action)
Representation of Fact
Oral, written, conduct, intention, opinion
Not:
Mere puff
Silence (unless a half truth, failure to correct, or legal or equitable duty to disclose)
Krakowski v Eurolynx Properties
Whether misrep. of fact = objective test
BUT ambiguous statement given Def’s meaning

Def. knew representation was false or recklessly indifferent
Def. intended Pl. to rely on the misrep.
Major

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