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Negligent Misrepresentation – Contracts
cassiejohnson//April 24, 2015//
Appellant bank brought a negligent misrepresentation claim against its title insurer after the bank discovered that the property that the insurer covered did not contain a house, and the insurer did not discover or alert the bank to this fact. The Court of Appeals held that, because the parties were sophisticated business entities with no special relationship that negotiated a commercial transaction at arm’s length, the insurer did not owe the bank a legally recognized duty to discover or disclose that the property lacked a house. Affirmed.
A14-0966 Bank of N.Y. Mellon v. Jacobson (Milles Lacs County)
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