Speigner v. Howard

In Speigner v. Howard, 502 So. 2d 367 (Ala. 1987) the Court addressed the question whether one who relays information, unaware of its falsity, can be held liable for fraud. 502 So. 2d at 370-71. In that case, the plaintiffs asserted that their real-estate agents had informed them that the roof of a house they were considering buying was in good condition and had no defects. The agents, however, had no personal knowledge regarding the condition of the roof and merely relied on representations made to them by the seller that the roof was in good condition. When the plaintiffs bought the house, they experienced massive leaks in the roof over one particular room. We held that the defendants were not liable for fraud "for merely conveying the statements of the seller to the agent of the plaintiffs" without evidence of bad faith. Id. at 371.