The Scope Of Negligent Misstatement

Introduction

Negligent misstatement occurs where there is a representation of fact, which is incorrect, which is carelessly made, and is relied on by another party to their disadvantage. As explained in our previous article, for some time, it has been possible to claim for economic loss arising out of a negligent misstatement where no contractual or fiduciary relationship exists between the parties. This is provided, however, that a special relationship of sufficient proximity¹ exists between the parties.

The Supreme Court in its recent decision in Walsh v Jones Lang Lasalle Limited [2017] IESC 38 has brought clarification to the interpretation of the law in relation to negligent misstatements in Ireland.