Negligent misrepresentation in California civil cases occurs when one party makes a false statement or provides inaccurate information, but without the intent to deceive, while failing to exercise reasonable care or competence in obtaining or communicating that information. Unlike fraud, which requires intentional deceit, negligent misrepresentation arises when the defendant should have known the information was false or was careless in verifying its accuracy. To succeed in a negligent misrepresentation claim, the plaintiff must show that the defendant made an untrue statement about a material fact, the defendant had no reasonable basis for believing the statement was true, and the plaintiff reasonably relied on the statement to their detriment, resulting in harm or damages.
In California, negligent misrepresentation claims are governed by the same principles as other negligence actions, but they focus on the failure to exercise reasonable care in providing information. Unlike fraud, there is no need to prove that the defendant had an intent to deceive; rather, the focus is on whether they were negligent in making the misrepresentation. Remedies for negligent misrepresentation typically involve compensatory damages to make the plaintiff whole, but punitive damages are generally not available unless the conduct is egregiously reckless. These cases often involve professionals, such as accountants, real estate agents, or lawyers, who may be held accountable for misstatements or omissions in the course of their duties, even if they did not intend to deceive.
