RULES Professional liability- is the risk that someone could get sued for causing damages to another person as a result of their work. The duties of professionals may be grouped into three broad categories, namely: 0 Contractual duties- they are the legal responsibilities of each party involved in a contractual agreement. I Fiduciary duties- they arise when the professional has scope for the exercise of discretion or power, the professional can exercise the power in such a way as to affect the other person, the other person is in a vulnerable position and it may be broader than that created by the contract (must avoid conflict of interest) I Tort duties- client may choose to sue in contract or tort where professional was negligent and professionals may also be liable in negligence to third parties. If a professional, may be liable in contract, tort, and breach of duciary duty then the client may plead all causes of action in the alternative. However, will not recover higher damages only because claim is for breach of duciary duty. Misrepresentation- A false statement of fact which misleads another to their detriment. It may be negligent or fraudulent (deceit). Moreover, liability for negligent misrepresentation may exist without a contractual or duciary relationship. Also, duty to be careful owed to persons that maker of statement could reasonably foresee may rely on it. Proving Negligent Misrepresentation There is duty of care based on a \"special relationship\" between the representor and the representee; the representation in question must be untrue, inaccurate, or misleading; the representor must have fallen below the requisite standard of care required of a professional making such a representation; the representee must have relied, in a reasonable manner, on the negligent misrepresentation and the reliance must have been detrimental to the representee in the sense that damages resulted. Even though the standard of perfection is not reasonable under the standard of care for professionals. Liability may result if the court determines that the professional standard was too low Also, there is a factor to keep in mind under causation of loss which is Reliance and Detriment. For example, did client rely and act upon the advice of the professional? In cases where plaintiff would have so acted regardless of professional advice, causation is not shown. 2) John Brokaw was interested in purchasing an apartment building that was in great demand with two offers currently presented for the property. He knew had to act quickly to get his offer in before the seller made a decision. He was, however, very concerned about the price. Since he did not trust the revenue gures that the vendor had provided, he hired Lonnie Hauser, a licensed property value appraiser. Brokaw explained in great detail that he needed to know as precisely as possible, how much the apartments would generate in rent. Hauser asked for the rent rolls for the building. Brokaw said the building owner had not delivered them yet, but he could provide a copy of the names of all of the people who lived in each unit of the building. Hauser's nal report indicated the building was worth between $1 million and $1.2 million when fully rented with two tenants in each unit at rents of $325 per person. The range in priced depended on whether Brokaw made capital improvements to the building. Brokaw accepted that information and purchased the property at the price of $1.2 million. He soon discovered, however, that the building was actually worth considerably less. The tenants were all on social assistance. The basic rent that the government was willing to pay was set at $325 per month, and each apartment contained two tenants. Hauser therefore had simply assmned that each apartment would produce $650 per month. In fact, however, whenever the two tenants were related, the government set the rent at $520 per month. A number of apartments were occupied by married couples. As a result, the actual value of the property was $1.1 million. Hauser says he should not be liable because be reasonably assumed that the same rent would apply to every apartment. Will Brokaw be successful if he sues Hauser for professional liability