Johnson v Healy

Facts
P buys house from D, a builder with long experience
P asks D about quality of house materials; D responsds that the house was made of the best material and that there was nothing wrong with it
D did no tests of the suitability of the soil
After the house is built, it settles incorrectly, causing major damage
P sues D for misrepresentation and negligence

Analysis

P can not make a [deceit] argument because D lacked the necessary intent. However, the court allows an argument of "negligent misrepresentation," citing the defendant's long experience, the unequal bargaining of the parties, and the type of contract made (the sale of land for residential purposes). D thus should have known that the foundation was flawed, and is liable to P for reliance damages.

See misrepresentation