The Expanding Scope of the Tort of Negligent Misrepresentation: Are Publishers Next

Abstract

counting profession. 17 Currently, in some jurisdictions, an accountant may be held liable for negligent misrepresentations contained in annual reports prepared by the accountant and received for a business purpose by any party who might reasonably be foreseen to rely upon the report. 8 Because such parties could include every present or future investor or creditor of a company, accountants in these jurisdictions are, in effect, potentially liable to the entire investment world.19Though not decided on negligent misrepresentation grounds, a recent Texas case could portend the expansion of liability for negligent misrepresentation to publishers. 20 In Eimann v. Soldier of Fortune 43 Ill.2d 54, 250 N.E.2d 656 (1969) (surveyor liable to third party he knew might rely on plat); Soil engineers-M.Miller Co. v. Dames & Moore, 198 Cal.App.2d 305, 18 Cal.Rptr.13 (1961) (soil engineer who provided soil report to sanitation district regarding feasibility of sewer construction liable to third party who bid on project and based cost estimates on soil engineer's report); Architects-Westerhold v. Carroll, 419 S.W.2d 73 (Mo.1967) (architect, who incorrectly certified to owner amount of work satisfactorily performed on unfinished project with result that owner paid incorrect amount to contractor, liable to contractor's surety who had been required to reimburse owner for overpaid amount); Notaries public-Baikanja v. Irving, 49 Cal.2d 647, 320 P.2d 16 (1958) (notary public who failed to provide for correct attestation of will liable to intended beneficiary); Accountants-see infra note 17. 17.See generally Achampong, Common Law Liability of Accountants for Negligence to Non-Contractual Parties: Recent Developments, 91 DICK.