Michael McGee v. JP Morgan Chase Bank, NA
520 F. App'x 829
11th Cir.2013Background
- Plaintiffs-appellants bought units in the Sarasota Cay Club and contemporaneously obtained loans from Chase.
- Chase loan officer Pickard allegedly made misrepresentations about unit pricing, nearby sales, and appraisals.
- Plaintiffs filed an amended complaint in district court alleging negligent misrepresentation under Florida law.
- The district court dismissed for failure to state a claim under Rule 12(b)(6).
- On review, the Eleventh Circuit applied Iqbal/Twombly plausibility standards and Florida law on negligent misrepresentation.
- The court held the complaint failed to plead reliance with particularity and causation sufficient to state a claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the complaint states a negligent misrepresentation claim. | McGee asserts misrepresentations about price, sales, and appraisals support reliance. | Chase contends the complaint lacks particularized facts showing misrepresentation, reliance, and damages. | Claim dismissed for failure to state a plausible negligent misrepresentation claim. |
| Whether the reliance and damages allegations are sufficiently pleaded. | Reliance on Pickard’s statements induced purchase and loan agreements. | Reliance not pled with specificity; damages not causally tied to the representations. | Insufficient reliance and causation pleadings; no actionable damages shown. |
Key Cases Cited
- Simon v. Celebration Co., 883 So.2d 826 (Fla. 5th DCA 2004) (elements and requirement of misrepresentation claim)
- FindWhat Investor Group v. FindWhat.com, 658 F.3d 1282 (11th Cir. 2011) (particularity and pleading requirements for fraud-based claims)
- Ostreyko v. B.C. Morton Org., Inc., 310 So.2d 316 (Fla. 3d DCA 1975) (negligent misrepresentation is tantamount to actionable fraud)
- Cooper v. Brakora & Assocs., Inc., 838 So.2d 679 (Fla. 3d DCA 2003) (economic damages requirement in misrepresentation claims)