What is the test for negligence misstatement?

Nova Scotia, Canada


The following excerpt is from duChene v. Merrill Lynch & Co. Canada Ltd., 2003 NSSC 106 (CanLII):

Both parties agree that the test for negligence misstatement is set out in Queen v. Cognos Inc. (1993), 1993 CanLII 146 (SCC), 99 D.L.R. (4th) 626 (S.C.C.). They are set out at p. 643 as follows: (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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