PJC Business

F RAUD AND N EGLIGENT M ISREPRESENTATION

PJC 105.19

Damages. Economic damages for negligent misrepresentation are limited to those necessary to compensate the party for the pecuniary loss caused by the misrepre sentation. Benefit-of-the-bargain and lost-profit damages are not available. Sloane , 825 S.W.2d at 442–43 (adopting Restatement (Second) of Torts §552B (1977)); see also D.S.A., Inc. v. Hillsboro Independent School District , 973 S.W.2d 662, 663–64 (Tex. 1998). In D.S.A., Inc. , the court also recognized that under Restatement (Second) of Torts §311 (1965), “[a] party may recover for negligent misrepresentations involv ing a risk of physical harm only if actual physical harm results.” D.S.A., Inc. , 973 S.W.2d at 664; accord Sloane , 825 S.W.2d at 443 n.4. For submission of negligent misrepresentation damages, see PJC 115.21.

[PJC 105.20–105.24 are reserved for expansion.]

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