A party that is attempting to induce another party to enter into a contract has a duty to ensure that reasonable care is taken regarding the accuracy of any representations of fact that may lead to the other party to enter a contract. If such reasonable care to ensure the truth of a statement is not taken, then the wronged party may be the victim of negligent misrepresentation. Negligent misrepresentation can occur when a party makes a careless statement of fact or does not have sufficient reason for believing in that statement’s truth.

Negligence Is Not the Same as Fraud

To establish a case of negligent misrepresentation, a plaintiff must establish elements different than what is required for fraudulent misrepresentation. In Missouri, a plaintiff must establish:

  • That information provided by the defendant was supplied in the ordinary course of the defendant’s business or because of a pecuniary interest on his part
  • That the defendant failed to exercise reasonable care or competence to determine if the information was correct
  • That the information was intentionally provided for the guidance of a limited group
  • That the plaintiff suffered a financial loss as a result of reliance on the misrepresentation

Additionally, a defendant will only be liable for negligent misrepresentation if the plaintiff was justified in relying on the information negligently provided.

You Need An Experienced Business Litigation Lawyer On Your Side.

When it comes to resolving a business dispute, it pays to work with experienced commercial and business litigation attorneys who will arm you with the information you need to make critical decisions while fiercely representing your interests.. Contact us online or call our Kansas City office directly at 816.249.2101 to schedule your free consultation.

Brian Wallace
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Kansas City Personal Injury Attorney