552 Neg Misrep Elements

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552 Neg Misrep Elements

• A D who (1) in the course of __________ or any
  other ________ in which D has a _____________ (2)
  supplies ______ information (3) for the guidance
  of others in ________________ is liable for
  ____________ losses suffered by those who
  ________________ rely on the information if D
  fails to exercise ________ in communicating the
  information, but only if D intended or knew the
  information would be supplied to P.

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552B Damages

• Those necessary to compensate plaintiff for the
  ___________________ of which the
  misrepresentation is the _________.
• BoB?
• OoP?
• Why that rule?
• BDO v. Mindis
• Facts
• Result

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552 Hypos

• Plaintiff has a 100k job and leaves it for a
  125k job and claims 552.
• BoB?
• OoP?

• Plaintiff pays 100k for a house that is
  misrepresented by house inspector. Brings 552
  claim. As sold, worth only 80k.
• BoB?
• OoP?

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ELD GA 51-1-11(a)

• Except as otherwise provided in this Code
  section, no privity is necessary to support a
  tort action but if the tort results from the
  violation of a duty which is itself the
  consequence of a contract, the right of action is
  confined to the parties and those in privity to
  that contract, except in cases where the party
  would have a right of action for the injury done
  independently of the contract.

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ELD Two Branches

• Contract

• Products Liability

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Tort ELD

• I buy a car from Ford, and its not as good a car
  as Ford promised it would be.
• I have a contract claim.
• Limitations on remedies in K may apply
• Foreseeability other limitations from common
  law apply

• Do I have a tort claim?
• General rule no because all I have is purely
  economic harm (lost BoB)
• Exceptions
• Intentional tort
• 552 (probably not going to fit the facts very
  often) or
• negligent performance of a contract that isnt
  within 552 is barred by ELD
• Calamitous event exception

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ELD and Products or Negligence Claims

• Most states
• Only if the product injures something (person or
  property) other than itself can a party bring a
  tort claim.
• Otherwise, limited to warranty claim, if any.

• Georgia
• Accident exception.
• Claim if product either (a) injures something
  ____ ____ itself or (b) theres a calamitous
  event which, although only product itself is
  damaged, posed an ______________ of injury to
  persons or other property.

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552 Third Parties

• GA statute says a third party cant sue for
  breach of a duty created by a contract to which
  hes not a party, unless the party would have had
  a claim independent of the contract.

• Third parties may bring tort claims under 552 so
  long as the plaintiff was when the representation
  was made a foreseeable person, or foreseeable
  class of person for whom the advice was intended.
• Smiley v. SJ Inves. Inc., 580 S.E.2d 283 (Ga.
  App. 2003)