law-negligent misrepresentation

The elements of a negligent misrepresentation claim are: (1) the defendant made a
representation in the course of its business, or in a transaction in which it had a
pecuniary interest; (2) the defendant supplied false information for the guidance of
others in their business; (3) the defendant did not exercise reasonable care or
competence in obtaining or communicating the information; and (4) the plaintiff suffered
pecuniary loss by justifiably relying on the representation. Fondren Constr. Co., Inc. v. Briarcliff
Housing Dev. Assocs., Inc., 196 S.W.3d 210, 218 (Tex. App.--Houston [1st Dist.] 2006, no pet.).

Elements of negligent misrepresentation

In order to prove negligent misrepresentation, a plaintiff must show that (1) the defendant made a
representation in the course of her business, or in a transaction in which she has a pecuniary interest, (2) the
defendant supplied "false information" for the guidance of others in their business, (3) the defendant did not
exercise reasonable care or competence in obtaining or communicating the information, and (4) the plaintiff
suffered a pecuniary loss by justifiably relying on the representation. Henry Schein, Inc. v. Stromboe, 102
S.W.3d 675, 686 n.24 (Tex. 2002).

The common element of all of Wood's causes of action is reliance. TCC moved for summary judgment,
asserting that there was no evidence of reliance. Neither in the trial court below nor in her briefing to this Court
has Wood shown how she relied on any of TCC's alleged misrepresentations that she did not have to take and
pass the CSCE as a requirement for graduation. Dr. Conklin's purported statement to her, before she took the
CSCE, simply noted that students who had failed the CSCE did eventually graduate. Also, the fact that TCC
had approved her application for graduation does not show that Wood did not have to take and pass the
CSCE as a requirement for graduation. Moreover, the clinic director's certification that Wood satisfied the
internship requirements and the transcript do not show that the CSCE was not a requirement for graduation.

Accordingly, we hold that the trial court did not err in granting TCC's no-evidence summary judgment motion
because Wood did not show how she relied on any alleged misrepresentation by TCC.

Source: Wood v. Texas Chiropractic College (Tex.App.- Houston [1st Dist.] July 24, 2008) (Jennings)
(suit by student against private educational institution, DTPA, misrepresentation, no reliance shown, NE-SJ)
AFFIRM TC JUDGMENT: Opinion by Justice Jennings
Before Justices Taft and Jennings, The Honorable Hudson
01-07-00952-CV Kelly Wood v. Texas Chiropractic College
Appeal from 190th District Court of Harris County
Trial Court Judge: Hon. Jennifer Walker Elrod

A negligent misrepresentation cause of action has four elements: (1) the representation is made by a
defendant in the course of his business, or in a transaction in which he has a pecuniary interest, (2) the
defendant supplies "false information" for the guidance of others in their business, (3) the defendant did not
exercise reasonable care or competence in obtaining or communicating the information, and (4) the plaintiff
suffers pecuniary loss by justifiably relying on the representation. Henry Schein, Inc. v. Stromboe, 102 S.W.3d
675, 686 n.24 (Tex. 2002).  Grant v. Laughlin Environmental, Inc. (Tex.App.- Houston [1st Dist.] Dec. 18,
2008)(Jennings)(summary judgment evidence, conclusory affidavit, breach of contract, quantum meruit, fraud,
negligent misrepresentation)