What is a negligent misstatement?

What is a negligent misstatement?

Negligent misstatement relates to a representation of fact, which is carelessly made, and is relied on by another party to their disadvantage.

What is negligent misstatement tort?

Negligent misstatement applies where a defendant owes a duty of care to a claimant but carelessly makes a false or misleading statement to that claimant, who relies on it and suffers loss as a consequence. This legal cause of action can arise in a variety of situations. The breach caused the claimant harm.

What is special relationship in negligent misstatement?

Generally, a special relationship will exist where the adviser knows that the other party is justifiably relying on him for his skill, expertise or knowledge.

What are the elements of negligent misstatement?

3 Elements: (Hedley Byrne & Co Ltd v Heller & Partners Ltd) 1. A duty of care when providing the information; 2. Breach of the standard of care; and 3. Loss or damage caused by reliance on the misrepresentation.

What is the remedy for negligent misstatement?

If a misrepresentation is fraudulent or negligent, the claimant may claim both rescission and damages under s2(1) of the Misrepresentation Act 1967 (the Act). If a misrepresentation is negligent or innocent, the court has the discretion to award rescission or damages in lieu of rescission under s2(2) of the Act.

Can you sue for negligent misstatement?

The legal action most likely to be used is that of the tort of negligence, for what is known variously as ‘negligent misstatement’ or ‘negligent misrepresentation’. In negligence the loss may be personal injury, including pure psychiatric injury, property damage or pure economic (financial) loss.

What are the remedies for negligent misrepresentation?

The remedies for misrepresentation are rescission and/or damages. For fraudulent and negligent misrepresentation, the claimant may claim rescission and damages.

What are the remedies for negligent misstatement?

How do you prove negligent misrepresentation?

To prove negligent misrepresentation, a plaintiff must demonstrate the following elements:

1. The defendant made a representation in a contract;
2. The representation was false;
3. The representation was made either carelessly, or without reasonable grounds to believe it was true;

How do you prove negligent misstatement?

An action for negligent misstatement arises where Party A has carelessly made a statement to Party B, where the relationship between the parties is such that Party A owes Party B a duty of care.

What are the elements of a negligent misstatement claim?

When examining Ivan’s claim to negligent misstatement, we have to firstly consider the presence of the elements that exist in an ordinary claim for negligence and lastly the presence of a special relationship. DUTY OF CARE; A person/party must owe a legal duty of care to the other person/party in order to claim for negligence.

Is there a special relationship between professional advice and negligent misstatement?

A special relationship exists where a professional person advises a known person who relies on the statement for a known purpose. For an action in negligent misstatement to succeed there must be a special relationship.

Is there duty of care in a negligent misstatement case?

The breach caused the claimant harm. The most complex aspect of negligent misstatement cases is usually the first limb of these criteria. No single comprehensive test applies to establish a duty of care, as the courts have used various ways of assessing this over the years.

What was the case of negligent misstatement in Heller v Byrne?

NEGLIGENT MISSTATEMENT. Hedley Byrne v Heller provided that there were situations in which negligence could provide a remedy for pure economic loss caused by things the defendant had said, or information they had provided. Hedley Byrne v Heller. Hedley Byrne asked National Provincial to check on Easipower.