St. Joseph's Hospital and Medical Center v. Reserve Life Insurance Co
In St. Joseph's Hospital and Medical Center v. Reserve Life Insurance Co., 154 Ariz. 307, 742 P.2d 808 (1987), the Arizona Supreme Court considered the need for expert testimony in a case in which negligent misrepresentation was alleged. Id. at 312-16, 742 P.2d at 813-17.
The court, examining the Restatement (Second) of Torts 552 and the accompanying comments, noted that, when the supplier of information on which another relies draws inferences from facts not known to the recipient and does so during a professional or business activity, a "plaintiff must present expert witness testimony as to the care and competence prevalent in that business or profession." Id. at 315, 742 P.2d at 816. When a matter involves investigation, the supplier of information must exercise the degree of care and competence reasonably expected of one in the supplier's business or profession in ascertaining the facts on which the information is based, but "expert testimony is not necessary to determine the reasonableness of the investigation." Id.