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Torts-Negligent Misrepresentation-Abolition Of The Privity Requirement, Leon E. Irish

Michigan Law Review

Defendants, professional consulting engineers, contracted with the city of Chattanooga to design a sewage system. As part of their performance of the contract they prepared a report of geological conditions which was to be distributed by the city to prospective bidders. Plaintiff, a tunneling subcontractor, had no dealings with the defendants, but did rely on their report in making its bid. Because one of defendant's draftsmen carelessly omitted pertinent geological information from the report, it took plaintiff three weeks longer to complete the work than had been anticipated. Plaintiff sued defendant for damages for misrepresentation; held, plaintiff may recover. …