September 27, 2017

A claim of negligent misrepresentation.

Practice point:  The  Appellate Division dismissed the claim where defendants demonstrated, prima facie, that there was no fiduciary or special relationship with the plaintiffs in this arm's length transaction.

Student note:  A cause of action alleging negligent misrepresentation requires the plaintiff to demonstrate (1) the existence of a special or privity-like relationship imposing a duty on the defendant to impart correct information to the plaintiff; (2) that the information was incorrect; and (3) reasonable reliance on the information.

Case:  CSI Group, LLP v. Harper, NY Slip Op 06521 (2d Dep't September 20, 2017)

Here is the decision.