Also known as: tortious misrepresentations · misrepresentation
Written by attorneys · grounded in primary & secondary sources — see below
3 senses
A tort claim that arises when a seller makes a false and material statement about a product or service to a person who is harmed by reasonably relying on the truth of that statement, where the seller knows the assertion is false and intends reliance.
A tort claim that arises when a seller makes a false and material statement about a product or service to a person who is harmed by reasonably relying on the truth of that statement, where the seller knows the assertion is false and intends reliance.
Select any source to read its text and confirm it supports the definition.
A tort claim that arises when a seller makes a false and material statement about a product or service to a person who is harmed by reasonably relying on the truth of that statement, where the seller fails to exercise reasonable care in discovering the falsity.
Select any source to read its text and confirm it supports the definition.
A tort claim that arises when a seller makes a false and material statement about a product or service to a person who is harmed by reasonably relying on the truth of that statement, imposing strict liability for public misrepresentations about product safety in jurisdictions following Restatement (Second) of Torts section 402B.
Select any source to read its text and confirm it supports the definition.
A tort claim that arises when a seller makes a false and material statement about a product or service to a person who is harmed by reasonably relying on the truth of that statement, where the seller fails to exercise reasonable care in discovering the falsity.
A tort claim that arises when a seller makes a false and material statement about a product or service to a person who is harmed by reasonably relying on the truth of that statement, imposing strict liability for public misrepresentations about product safety in jurisdictions following Restatement (Second) of Torts section 402B.
Each sense below has its own examples, sources, and questions.
Tamara Tan, a solo practitioner, posted on her firm website that she had handled dozens of complex commercial lease negotiations in State A. In reality she had never handled such a matter. Maple Legal read the post, retained her for a new lease, and suffered losses after she gave inaccurate advice on subletting rules. Maple Legal later sued Tan for tortious misrepresentation based on the false statement about her experience.
Tracy Torres moved under Rule 60(b) to set aside a judgment, alleging the opposing party had misrepresented key financial facts during mediation. The court found the misrepresentation constituted misconduct by an opposing party and granted relief from the judgment.
Thomas Thompson concealed substantial investment accounts from Theresa Tucker before they signed a marital settlement agreement. After discovering the omission, Tucker moved to set aside the agreement on the ground that it resulted from misrepresentation. The court granted relief because the agreement was reached through misrepresentation and lacked full financial disclosure.
Tobias Thomas, representing a client in a disciplinary investigation, submitted documents that falsely stated he had timely filed required disclosures. The bar later discovered the documents were backdated. The disciplinary authority charged Thomas with engaging in conduct involving misrepresentation under the professional conduct rules.
Reliance is not justified if the recipient knows the statement is false or if its falsity is obvious. In other circumstances the recipient of a fraudulent misrepresentation may rely on its truth even without investigation.
Supporting sources
Torchlight Media published a product manual stating its drone was safe for indoor use near children. The company had not tested the claim. A child was injured when the drone malfunctioned indoors. The family sued for negligent misrepresentation based on the unverified safety statement.
Negligent misrepresentation occurs when the speaker fails to exercise reasonable care in discovering the falsity of a statement. Fraudulent misrepresentation requires that the speaker knows the statement is false and intends that others rely on it.
Supporting sources
Yes. A misrepresentation of law may be negligent conduct when the speaker provides an unverified legal assertion on a matter known to be subject to change and the recipient reasonably relies on it to their detriment.
Supporting sources
No. A disclaimer may undermine a finding of negligence or justified reliance when the recipient is sophisticated and has independent means to verify the information, but the disclaimer does not automatically bar liability if the statement still induces reasonable reliance.
Supporting sources
Topaz Mining advertised its new crane as rated to lift 20,000 pounds. A buyer relied on the rating, loaded 18,000 pounds, and the boom collapsed causing injury. The buyer sued Topaz Mining for tortious misrepresentation after discovering the crane could not safely handle the advertised load.
…equitable doctrines that are available. And he opines that “there is sufficient flexibility in the concepts of fraud, duress, misrepresentation and undue influence, not to mention differences in economic bargaining power” to enable the courts to avoid enforcement of unconscionable provisions in long printed standardized contracts.…