The appellant municipality appealed a judgment finding it liable for negligent misrepresentation arising from assurances given at council meetings that a road would be upgraded in time to permit a subdivision development.
The court held that the trial judge was entitled to accept the respondent's evidence over the municipal minutes, and that the respondent reasonably relied on the assurances in proceeding with the development agreement and related expenditures.
The representations were treated as implying an existing municipal commitment and ability to complete the road work, not merely non-actionable future promises.
In the circumstances, where the Reeve spoke before full council without correction, the municipality could be liable at the operational level in negligence.
The appeal was dismissed with costs.
