Osuchowski v. Gallinger Real Estate

In Osuchowski v. Gallinger Real Estate (273 AD2d 892 [4th Dept 2000]), the plaintiff, who purchased real estate at an auction conducted by the defendant, alleged that its agent had made negligent misrepresentations during the auction. The Supreme Court's denial of the defendant's motion for summary judgment was affirmed. The Appellate Division reasoned: "We reject defendant's contention that, as a matter of law, a claim for negligent misrepresentation does not lie because the parties were not in privity and did not have a special relationship; ' there may be liability for negligent misrepresentation where there is a relationship between the parties such that there is an awareness that the information provided is to be relied upon for a particular purpose by a known party in furtherance of that purpose, and some conduct by the declarant linking it to the relying party and evincing the declarant's understanding of the reliance.' " (Id.)