---
title: Negligent Misrepresentation as a Cause of Action
description: The law of the State of Minnesota recognizes Negligent Misrepresentation as a cause of action. Negligent misrepresentation is defined as...
---

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05/25/2016

# Negligent Misrepresentation as a Cause of Action

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The law of the State of Minnesota recognizes **Negligent Misrepresentation** as a cause of action. Negligent misrepresentation is defined as:

> One who, in the course of his business, profession or employment, or in any other transaction in which he has a pecuniary interest, supplies false information for the guidance of others in their business transactions, is subject to liability for pecuniary loss caused to them by their justifiable reliance upon the information, if he fails to exercise reasonable care or competence in obtaining or communicating the information. [Hebrink v. Farm Bureau Life Ins. Co.](http://caselaw.findlaw.com/mn-court-of-appeals/1354972.html), 664 N.W.2d 414, 420 (Minn. Ct. App. 2003)

The most difficult aspect of this cause of action to get comfortable with is the idea of what is "reasonable care or competence." These things change depending on a person's characteristics such as experience and licensure (i.e. licensed attorneys, real estate agents, mortgage originators). The more experience one has, the greater degree of competence one is expected to have. With licensure, the expectation is generally that if you are licensed in a profession, you have adequate competency to overcome a lack of experience.

The safe course of action for professionals is to ask, Am I doing enough? Are there other questions that I need to ask? Is there other information I should try to obtain?

**Knowing the elements of negligent misrepresentation is important and the first step to avoiding making one.**

- [duty](https://www.gallatin-law.com/blog/tag/duty),
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- [Negligent Misrepresentation](https://www.gallatin-law.com/blog/tag/negligent-misrepresentation)

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## [Dan Gallatin](https://www.gallatin-law.com/blog/author/dan-gallatin)

Dan is a lifelong resident of Minnesota. Born in St. Paul, Dan spent many of his formative years growing up there before moving to White Bear Lake. After graduating from White Bear Lake, Dan spent four glorious years at the University of Wisconsin-Madison, earning a degree in two majors. Dan worked as a Senior Investigator at the Minnesota Department of Commerce for several years after graduating from college. During his final years Dan attended William Mitchell College of Law while still working full-time. During this exhausting 3 ½ year period Dan honed his skills in becoming an efficient, to-the-point legal practitioner. While at Madison Dan met his wife, Tonya, and together they moved to Minnesota to plant their roots. Dan and Tonya have two amazing, unique children and reside in Hugo.

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