The appellant, an IT consulting firm, appealed a Small Claims Court decision finding it liable for negligent misrepresentation.
The appellant had offered the respondent an independent contractor position at Loblaw, but failed to disclose that the position had not yet received final approval.
The respondent left another contract to accept the offer, which was subsequently withdrawn.
The Divisional Court upheld the trial judge's finding that the appellant made a negligent misrepresentation and that the respondent reasonably relied on it to his detriment.
The Court also held that the entire agreement clause in the contract did not preclude liability, applying the Tercon approach to find the clause unconscionable given the informational imbalance and lack of notice.