Opinion ID: 2167246
Heading Depth: 1
Heading Rank: 6

Heading: recognition of negligent misrepresentation claim

Text: In their first assignment of error, the Boneses argue that the district court erred in refusing to consider their defense of negligent misrepresentation. The district court's order states: One of the defenses asserted by the Defendants is that of negligent misrepresentation. However, the Nebraska Court of Appeals has clearly held in the decision of Simon v. Wilkinson Agency, Inc., 2 Neb.App. 877, 518 N.W.2d 154 (1994) that the claim of negligent misrepresentation has been recognized in Nebraska only in the context of the relationship between an insured and his or her agent. Neither the district court nor the parties to this action discuss this court's decision in Gibb v. Citicorp Mortgage, Inc., 246 Neb. 355, 518 N.W.2d 910 (1994), decided approximately 1 month after Simon v. Wilkinson Agency, 2 Neb.App. 877, 518 N.W.2d 154 (1994). Gibb involved a purchaser of real estate who sued his real estate agency on, inter alia, a theory of negligent misrepresentation. In reversing the order of the district court sustaining Citicorp Mortgage's demurrer, we recognized Gibb's negligent misrepresentation theory of recovery as a viable basis of liability in the context of a real estate purchase and specifically adopted the definition of negligent misrepresentation found in the Restatement (Second) of Torts § 552 (1977). In the present case, the district court's determination that such claim of negligent misrepresentation has been recognized in Nebraska only in the context of the relationship between an insured and his or her agent was error. See, also, NECO, Inc. v. Larry Price & Assocs., 257 Neb. 323, 597 N.W.2d 602 (1999) (reversing summary judgment in favor of vendor, finding that genuine issues of material fact existed as to whether statute of limitations had expired on buyer's claims of fraudulent and negligent misrepresentation with regard to whether building would contain complete sprinkler system). To the extent Simon, supra, holds otherwise, it is overruled. Finding such error, however, does not end our inquiry, as error without prejudice provides no ground for appellate relief. See King v. Crowell Memorial Home, 261 Neb. 177, 622 N.W.2d 588 (2001). Whether prejudicial error resulted from the trial court's failure to consider our holding in Gibb, supra, will be reviewed in conjunction with out consideration of the Boneses' second assignment of error.