Appeal from a trial judgment dismissing a negligent misrepresentation claim.
The appellants, a manufacturer of assembly lines, contracted to supply equipment to a German company.
When the purchaser transferred the contract to its Canadian subsidiary, the appellants requested assurances from the parent company.
The respondents provided a letter from their bank confirming project financing and the parent company's guarantee.
When the project failed due to industry collapse, the appellants sued for negligent misrepresentation, claiming the letter was misleading because it failed to disclose that the bank's financing was conditional.
The trial judge dismissed the claim, finding the representation was true and not misleading, and that the appellants had not reasonably relied on it.
The Court of Appeal upheld the dismissal, finding no palpable and overriding error and no denial of procedural fairness.