Negligent Misrepresentation Claim

A negligent misrepresentation claim is a legal cause of action that arises when one party makes a false statement without exercising reasonable care or competence in obtaining or communicating the information, and another party justifiably relies on the false statement to their detriment. Unlike fraudulent misrepresentation, negligent misrepresentation does not require proof of intent to deceive, but rather a failure to act with the degree of care that a reasonable person would exercise in the same circumstances. To succeed in a negligent misrepresentation claim, the plaintiff must prove that the defendant made a false representation of a material fact, without reasonable grounds for believing it to be true, and that the plaintiff justifiably relied on the false statement, suffering damages as a result. Negligent misrepresentation claims often arise in professional contexts, such as when a financial advisor or real estate agent provides false or misleading information to a client.