The defendant insurer brought a motion for summary judgment to dismiss the plaintiffs' action for negligent misrepresentation.
The plaintiffs alleged that during a settlement meeting for a fire loss claim, the insurer misrepresented that the plaintiffs could sue their former insurance broker for the shortfall in coverage, inducing them to sign a release and settle for less than they were entitled to.
The insurer argued the action was barred by the release and the limitation period.
The court dismissed the motion, finding genuine issues requiring a trial regarding whether the misrepresentation was made, whether reliance was reasonable, and when the limitation period commenced.
