The doctrine of lender liability refers to the various legal theories a commercial borrower may bring against their lender for purported misconduct. If a lender benefits from negligent misrepresentations made to a borrower, the lender may be liable. The South Florida lender liability claims attorneys at Schecter Law have represented both borrowers and lenders.
Under Florida law a claim for negligent misrepresentation requires that: (1) there was a misrepresentation of material fact; (2) the representer either knew of the misrepresentation, made the misrepresentation without knowledge of its truth or falsity, or should have known the representation was false; (3) the representer intended to induce another to act on the misrepresentation; and (4) injury resulted to a party acting in justifiable reliance upon the misrepresentation. Additionally, a claim for negligent misrepresentation has a heightened pleading standard under Florida law because negligent misrepresentation sounds in fraud.