The landlord of a retail shopping mall redesigned the development without notifying the franchisor or the franchisee, who had relied on the original site plan attached to their leases.
The franchisee suffered business losses due to the redesign and construction.
The trial judge found the landlord liable for negligent misrepresentation and the franchisor liable for innocent misrepresentation and breach of the duty of good faith, awarding the franchisee $400,000 in damages.
The Court of Appeal upheld the liability and damages findings, concluding that the site plan constituted a representation of the mall's layout.
However, the Court allowed the landlord's appeal regarding the franchisor's claim for contribution and indemnity, finding the franchisor was estopped by its contradictory litigation conduct.
