Appeal of negligent misrepresentation claim against accountant dismissed due to lack of reliance and relationship.
The appellant sued the respondent accountant and his firms for negligent misrepresentation, alleging she lost approximately $825,000 invested in a company based on his advice.
The trial judge dismissed the action, finding no accountant-client relationship existed when the initial investment was structured, and that the appellant did not rely on the accountant's representations when making further investments despite knowing the company was in financial difficulty.
The Court of Appeal upheld the dismissal of the action but allowed the appeal on costs on consent, reducing the trial costs awarded to the respondents.
OCACourt of AppealMay 12, 2004