PJC Business

PJC 105.19

F RAUD AND N EGLIGENT M ISREPRESENTATION

PJC 105.19 Question and Instruction on Negligent Misrepresentation QUESTION ______ Did Don Davis make a negligent misrepresentation on which Paul Payne justifiably relied? Negligent misrepresentation occurs when— 1. a party makes a representation in the course of his business or in a transaction in which he has a pecuniary interest, and 2. the representation supplies false information for the guidance of others in their business, and 3. the party making the representation did not exercise reasonable care or competence in obtaining or communicating the information. Answer “Yes” or “No.” Answer: _______________ COMMENT When to use. PJC 105.19 is appropriate for use in most cases involving a claim of negligent misrepresentation if the court, as a matter of law, or the jury, as a matter of fact, has found that the plaintiff is within the class of persons allowed to bring this cause of action. See Federal Land Bank Ass’n of Tyler v. Sloane , 825 S.W.2d 439, 442 (Tex. 1991) (adopting tort of negligent misrepresentation in Restatement (Second) of Torts §552 (1977)). Compare McCamish, Martin, Brown & Loeffler v. F.E. Appling Interests , 991 S.W.2d 787, 791, 794 (Tex. 1999) (lawyer may be liable for negligent misrepresentation to nonclient who justifiably relies on lawyer’s representation of material fact), with LAN/STV v. Eby , 435 S.W.3d 234, 235–36, 246–47 (Tex. 2014) (economic loss rule did not allow general contractor to recover for negligent misrepre sentation by project architect). Broad-form submission. PJC 105.19 is a broad-form question designed to be accompanied by one or more appropriate instructions. Tex. R. Civ. P. 277 requires that “the court shall, whenever feasible, submit the cause upon broad-form questions.” Tex. R. Civ. P. 277; see Thota v. Young , 366 S.W.3d 678, 689 (Tex. 2012) (rule 277’s use of “whenever feasible” mandates broad-form submission in any or every instance in which it is capable of being accomplished). For further discussion, see PJC 116.2 regarding broad-form issues and the Casteel doctrine. Source of question and instruction. The question and instruction are patterned after the supreme court’s opinion in Sloane , 825 S.W.2d at 442.

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