Chapter 16

MISREPRESENTATION

  The independent tort of “misrepresentation” usually describes a situation where a misstatement causes intangible pecuniary loss. There are two types of misrepresentation, “intentional misrepresentation” and “negligent misrepresentation.”

• Intentional misrepresentation (deceit):  To recover for “intentional misrepresentation” (also called “deceit” or “fraud”), P must establish the following elements:
  • Misrepresentation:  A misrepresentation by D;
  • Scienter:  Scienter (i.e., a culpable state of mind - either knowledge of the statement’s falsity or reckless indifference to the truth);
  • Intent:  An intent to induce P’s reliance on the misrepresentation;

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