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Successful Misrepresentation Defense

Written by Chilwin Cheng | Feb 8, 2025 10:55:08 AM
We recently successfully defended our client, a mortgage broker, against claims of negligence misrepresentation, professional negligence, and fraudulent misrepresentation. I’m pleased to report my client was fully exonerated.
Though I was counsel on this matter, I commend this case to my network for a couple of reasons. First, it is not often the court opines on whether a professional negligence case can be made out without expert evidence. In this case, the plaintiff (for absolutely defensible reasons, I say with a tip of a hat to my opponent) chose not to adduce an expert to opine on the standard of care expected of the professional. I had a job to do and addressed that choice.

The product is quite a fulsome judicial discussion on how such claims ought to be adjudicated.  Proving a professional negligence case without expert testimony on the relevant standard of care is possible, but it’s exceedingly difficult.

Second, the reasons for judgment provide a fulsome review of the law of negligent misrepresentation in a case involving pure economic loss, which one doesn’t find frequently.

For those in regulated industries, this case serves as an important reminder that organizations and their employees and contractors must be cautious about informally advising or actions that appear to advise friends and acquaintances, lest conflicts or confusion arise between personal and professional roles, to the detriment of all involved.