Negligent misrepresentation permits recovery for economic loss caused by information supplied without reasonable care, in a business capacity, to a limited group.
The core limitation is the class of claimants. Liability generally extends to the person for whose benefit and guidance the information was supplied, and to a limited group the supplier knows will receive it — not to everyone who foreseeably relies. This is what keeps accountants and appraisers from owing duties to the world.
Supplied in the course of business. Casual statements are not covered.
Pecuniary interest. The supplier must have a pecuniary interest in the transaction, which is satisfied by being paid for the work.
Justifiable reliance and causation are required as in fraud, without the element of knowledge or intent.
Where it arises. Financial statements and audit opinions; appraisals; environmental and engineering reports; title abstracts; and representations made during due diligence by parties who were not careless enough to be fraudulent.
Disclaimers and reliance letters. Professionals limit exposure through engagement letters restricting use and through express reliance letters identifying who may rely. A party intending to rely on a report commissioned by someone else should obtain such a letter; without one, standing is the first defence raised.
Economic loss doctrine bars the claim in some states where a contract governs.