Also known as: misrepresentation · misrepresentations · misrepresenting · misrepresented · fraudulent misrepresentation · negligent misrepresentation · misrep
Written by attorneys · grounded in primary & secondary sources — see below
A tort imposing liability when a plaintiff suffers pecuniary loss by justifiably relying on a defendant's false assertion of fact or law.
Talia Torres, a solo practitioner, states in a website ad that she has never lost a trial. A prospective client reads the claim, retains her for a complex contract dispute, and loses after paying substantial fees. The client later learns Torres has lost several prior trials. The client sues Torres for the fees paid in reliance on the false statement.
Trevor Tate tells Tessa Takahashi that a warehouse he is selling has no structural defects. Relying on the statement, Takahashi buys the property and later discovers major foundation cracks that require costly repairs. Takahashi sues Tate to recover the repair costs caused by the false assertion.
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Theresa Tucker obtains a default judgment against Thaddeus Tran by submitting an affidavit that falsely states Tran received proper notice. Tran later learns of the false affidavit and moves under Rule 60(b)(3) to set aside the judgment on grounds of misrepresentation by the opposing party.
Taliah Tang, an appraiser, negligently states in a report that a commercial building meets all fire codes when it does not. Titan Industries relies on the report and purchases the building, incurring fines and retrofit costs. Titan sues Tang for the losses caused by the negligent misrepresentation.
Tessa Takahashi and Trevor Tate negotiate a marital settlement. Takahashi falsely states she has no hidden assets. Tate signs the agreement in reliance on the statement. After discovering the hidden assets, Tate moves to set aside the agreement on the ground of misrepresentation.
Talia Torres, while representing a client, submits a court filing that contains a material falsehood about the client's prior litigation history. The opposing party discovers the falsehood and reports Torres to disciplinary authorities for engaging in conduct involving misrepresentation.
A plaintiff must show a false assertion of fact or law, justifiable reliance on that assertion, and resulting pecuniary loss. The assertion need not be fraudulent. Negligent misrepresentations can also support liability.
Supporting sources
The tort focuses on recovery of economic loss caused by reliance on a false statement, whereas contract rules address whether a misrepresentation renders an agreement voidable or supports rescission and restitution.
Yes. Fraud, misrepresentation, or misconduct by an opposing party is an explicit ground for setting aside a judgment under the rule.
Yes. A misrepresentation of fact or law may constitute negligent conduct that gives rise to tort liability when it causes pecuniary harm.
…deserve to be considered, ignorant or incompetent, that it is rarely possible, on adequate grounds, conscientiously to stamp the misrepresentation as morally culpable; and still less could law presume to interfere with this kind of controversial misconduct." [^maj-15]: The climate in which public officials operate, especially during…