An Arizona appellate court addressed the purely legal issue of whether a trial court correctly ruled that an appraiser did not owe a duty of care to a lender as a matter of law, after the lender filed a complaint against the appraisal company for negligent misrepresentation. The appraiser had countered that he owed no duty to the lender because the appraisals were intended specifically for someone else’s use alone. Read on for the details.

An Arizona appellate court reversed the dismissal of a negligent misrepresentation case against an appraisal company, saying the allegations in the complaint alleged sufficient facts to state a claim upon which relief can be granted and effectively put the appraiser  on notice of the nature and basis of the claim against him.