The plaintiff developer sued the defendant municipality for negligent misrepresentation regarding a rezoning application for a condominium project.
During the rezoning process, the municipality failed to inform the developer about a large, high-pressure water main located in an adjacent easement, mistakenly advising that it was a trunk sewer.
The developer relied on this information and proceeded with the purchase and development.
At the site plan approval stage, the municipality's engineers objected to the proposed underground parking garage due to the risks posed to the water main, forcing the developer to redesign the project and incur significant delays and costs.
The court found that the municipality owed a duty of care to the developer, breached that duty through negligent misrepresentations, and that the developer reasonably relied on those representations.
The court awarded the developer $4,496,384 in damages and pre-judgment interest.
