Negligent Misrepresentation
The Illinois First District Appellate Court held that negligent misrepresentation involves the breach of a duty to use care in obtaining and communicating information upon which others may reasonably be expected to rely in the conduct of their affairs. Cahill v. Eastern Ben. Systems, Inc., 236 Ill.App.3d 517, 521 (1st Dist. 1992). To sustain a cause of action for negligent misrepresentation, the plaintiff must prove that: (1) a duty existed owed by defendant to plaintiff; (2) a breach of that duty; and (3) an injury proximately resulting from the breach. Id. In addition, to sustain a cause of action for negligent misrepresentation the plaintiff is also required to prove actual reliance. Id. Moreover, negligent misrepresentation claims are generally limited to those in the business of supplying information to others. Illinois Jurisprudence, Personal Injury and Torts § 13:37.
In negligent misrepresentation actions, a plaintiff must prove that the defendant owes a duty to the plaintiff to communicate accurate information. Kopley Group V., L.P. v. Sheridan Edgewater Properties, Ltd., 376 Ill.App.3d 1006, 1017 (1st Dist. 2007). In Illinois, such a duty can be found in two instances where the defendant is in the business of supplying information to others for guidance in business transactions. Illinois Jurisprudence, Personal Injury and Torts § 13:38. Not everyone who furnishes information during the course of business will be considered to be in the business of furnishing information. Id. The information supplied must be for the purpose of guiding the plaintiff's business dealings with third parties. Id.
Furthermore, negligent misrepresentation involves the breach of a duty to use care in obtaining and communicating information upon which others may reasonably be expected to rely in the conduct of their affairs. Illinois Jurisprudence, Personal Injury and Torts § 13:37. The defendant need not know that the statement is false for a negligent misrepresentation claim to exist. Kopley Group V., L.P., 376 Ill.App.3d at 1017. Negligent misrepresentation requires that the defendant’s mental state need only be negligent in ascertaining the truth of the statement. Roe v. Jewish Children's Bureau of Chicago, 339 Ill.App.3d 119, 131 (1st Dist. 2003). A misrepresentation can result from the failure to provide adequate information when there is a duty to provide such information, as well as providing information which is false. Gallagher Corp. v. Russ, 309 Ill.App.3d 192, 201 (1st Dist. 1999).
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