Hardin County Savings Bank v. City of Brainerd Hous. & Redevelopment Auth.

Six banks (the Banks) alleged that the negligent misrepresentation of Respondent, James H. Bedard, Inc., caused them to be damaged when the Housing and Redevelopment Authority of the City of Brainerd defaulted on bonds held by the Banks. Specifically, the Banks purchased $3.3 million in bonds from the City, which helped finance a development project in the City. In deciding to purchase the bonds, the Banks relied on an appraisal and feasibility study prepared by Bedard. The Banks filed a negligent misrepresentation claim against Bedard, alleging that Bedard's study overstated the value of the project and the rate at which the land would sell. The district court dismissed the action, concluding that the Banks failed to plead their negligent misrepresentation claim against Bedard with particularity. The court of appeals affirmed. The Supreme Court reversed, holding that because the Banks specifically pleaded facts underlying each of the elements of their negligent misrepresentation claim, the Banks pleaded the "ultimate facts" of their claim and thus satisfied the particularity requirement under Minn. R. Civ. P. 9.02. Remanded. View "Hardin County Savings Bank v. City of Brainerd Hous. & Redevelopment Auth." on Justia Law