Opinion ID: 2366381
Heading Depth: 1
Heading Rank: 4

Heading: Supplying False Information

Text: Before we can assess whether prima facie evidence on the record establishes that the Dyer Library Association supplied false information to the Binettes, we must determine as a matter of law what may constitute the supplying of false information. The Dyer Library Association said nothing to the Binettes concerning the underground oil tank. The library association argues that liability for negligent misrepresentation requires the affirmative supplying of false information. We disagree. We have adopted for purposes of fraudulent misrepresentation the doctrine that an omission by silence may constitute the supplying of false information. Horner v. Flynn, 334 A.2d 194, 203 (Me.1975), overruled on other grounds by Taylor v. Comm'r of Mental Health & Mental Retardation, 481 A.2d 139 (Me.1984). We now hold for purposes of negligent misrepresentation that, although not every failure to disclose constitutes a misrepresentation, silence rises to the level of supplying false information when such failure to disclose constitutes the breach of a statutory duty. Pursuant to 38 M.R.S.A. § 563(6) (1989), [1] which became effective September 27, 1987, the owner of real estate on which an underground oil tank is located must file written notice of the existence of the tank prior to the sale or transfer of that real estate. Section 563(6) is a safety statute. 38 M.R.S.A. § 561 (1989 & Supp.1995). [2] Buyers of real estate on which an underground oil tank is located are vulnerable to the dangers of an oil leak on the property and are among those the statute is intended to protect. Section 563(6) does not limit the disclosure requirement to those sellers who know of an underground storage tank on their property. The statute's disclosure requirement, rather, is absolute. Section 563(6) mandates that when an underground oil tank exists on property for sale the seller of that property may not remain silent.