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Zanakis-Pico v. Cutter Dodge

6/14/2002

, if he [or she] fails to exercise reasonable care or competence in obtaining or communicating the information. Restatement (Second) of Torts § 552, at 126-27 (emphasis added).


Although the court determined that the term "substantial" imposes a threshold amount for fraud or deceit actions, this jurisdiction in Chun v. Park, 51 Haw. 462, 462 P.2d 905 (1969), expressly adopted the elements set forth in Restatement (Second) of Torts § 552 for negligent misrepresentation. See id. at 468, 462 P.2d at 909. See also State by Bronster v. United States Steel Corp., 919 P.2d 294, 904 (1996) (" oth [Restatement (Second) of Torts §] 552, and this court in Chun, recognize that pecuniary losses are recoverable in a claim for negligent misrepresentation. Section 552(1) expressly states that liability will attach 'for pecuniary loss caused . . . by [plaintiff's] justifiable reliance upon the information[.]" (Emphasis in original.)). See also Kohala Agric. v. Deloitte & Touche, 86 Hawaii 301, 323, 949 P.2d 141, 163 (1997). This court's prior case law confirms that a prima facie case for negligent misrepresentation requires only proof of some pecuniary injury . The Picos have alleged that.


IX.


Accordingly, the court's interpretation of the word "substantial" was incorrect, as it apparently requires a sizable amount of damage and, as indicated in the preceding discussion, was wrongly applied. The court specifically granted summary judgment for Cutter regarding all the Picos' tort claims using this incorrect application of the "substantial pecuniary damage" standard. Therefore, the court erred when it granted Cutter's motion for summary judgment.


With the foregoing elaboration, I agree with the disposition of this case by the majority.






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