What is the test for a finding of negligent misrepresentation?

British Columbia, Canada


The following excerpt is from Vavra v. Victoria Ford Alliance Ltd., 2003 BCSC 1297 (CanLII):

In Queen v. Cognos Inc., 1993 CanLII 146 (SCC), [1993] 1 S.C.R. 87 at ¶33, Mr. Justice Iacobucci succinctly summarizes the essential requirements for a finding of negligent misrepresentation. (1) there must be a duty of care based on a "special relationship" between the representor and the representee; (2) the representation in question must be untrue, inaccurate, or misleading; (3) the representor must have acted negligently in making said misrepresentation; (4) the representee must have relied, in a reasonable manner, on said negligent misrepresentation; and (5) the reliance must have been detrimental to the representee in the sense that damages resulted.

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