What is the test for reliance in the tort of negligent misrepresentation?

British Columbia, Canada


The following excerpt is from Sharbern Holding Inc. v. Vancouver Airport Centre Ltd., et al, 2005 BCSC 232 (CanLII):

As noted by all of the defendants, reliance is an essential ingredient in the tort of negligent misrepresentation: Queen v. Cognos Inc., 1993 CanLII 146 (SCC), [1993] 1 S.C.R. 87, 99 D.L.R. (4th) 626. In that case, Iacobucci J. described the ingredients of a successful negligent misrepresentation claim: (1) There must be a duty of care based on a “special relationship” between the representor and the representee; (2) The representation must be untrue, inaccurate or misleading; (3) The representor must have acted negligently in making the misrepresentation; (4) The representee must have relied, in a reasonable manner, on the negligent misrepresentation; and (5) The reliance must have been detrimental to the representee in the sense that damages resulted.

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