St. Louis Negligent Misrepresentation Attorney

Legally speaking, negligent misrepresentation occurs when someone makes a false statement, believing it to be true, but fails to use reasonable care or diligence in verifying that it’s accurate. Unlike fraudulent misrepresentation, these cases don’t require intent to deceive, only carelessness that results in harm.

Negligent misrepresentation can occur in:

• Business contracts or negotiations
• Partnership or investment agreements
• The sale or acquisition of a company
• Real estate listings or disclosures

Even an honest mistake can lead to serious financial consequences when due diligence is neglected.

To succeed in a negligent misrepresentation case, the plaintiff generally must prove four key elements:

1. A false statement of a material fact was made during a business or professional transaction.
2. The party making the statement failed to use reasonable care to verify its accuracy.
3. The victim relied on that statement when making a financial or business decision.
4. The victim suffered damages as a result of that reliance.

Examples include:

• A seller providing inaccurate financial statements during a company sale.
• A real estate agent sharing an incorrect appraisal or inspection report.
• A consultant providing misleading projections that result in an investor losing money.

In the corporate world, even minor inaccuracies can lead to major losses. Negligent misrepresentation often arises when one party provides incorrect financial information, valuation data, or contract terms. The business litigation attorneys at Simon Law evaluate whether the misstatement stemmed from carelessness or crossed the line into fraud, and help clients recover what they’ve lost.

Real estate disputes frequently involve claims of negligent misrepresentation. Buyers and sellers alike may rely on property disclosures, inspection results, or appraisals that turn out to be wrong. In Missouri, such misstatements can lead to liability if they cause financial harm.

Simon Law represents both buyers and sellers in real estate misrepresentation cases throughout St. Louis and across Missouri, guiding clients through every step of the dispute process.

Professionals such as accountants, appraisers, consultants, and financial advisors have a duty to exercise care when providing information or opinions. When those professionals issue reports, valuations, or recommendations without proper diligence, and clients suffer losses as a result, they may be held liable for negligent misrepresentation.

At Simon Law, we hold professionals accountable for the harm caused by their negligence, helping clients restore what they’ve lost and protect their interests going forward.

The key difference is intent. Fraudulent misrepresentation involves knowingly providing false information to deceive another party, while negligent misrepresentation occurs when someone unintentionally provides false information because they failed to verify its accuracy.

You must show that the other party made a false statement of material fact, failed to use reasonable care in verifying that statement, that you relied on it, and that you suffered measurable damages as a result. Supporting documents, like contracts, emails, or financial records, can help establish your claim.

Damages often include the money you lost as a result of relying on the false statement, as well as related expenses or losses. In some cases, you may also recover consequential damages tied to lost opportunities or investments.

The statute of limitations for negligent misrepresentation in Missouri may vary depending on the circumstances of your case. It’s important to act quickly to preserve evidence and protect your rights. For more information on related legal standards, refer to Missouri’s consumer protection statute (§407.020).