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Sain v. Cedar Rapids Community School District
626 N.W.2d 115
Iowa
2001
Check Treatment

*1 115 actions, he m Santos, engaged but conduct prove Board failed to with and, nature, by very is dishonest its Herrera and which between communications adversely ability practice the rule. reflects on his scope fell within Santos no a longer public law. We can consider Charges. 4. Other to be a viable sanction. reprimand that the with the commission agree lawyers, public fortunately, For most al- prove remaining Board failed reprimand represents wake-up call. For by convincing prepon- leged violations lawyers, regrettably, reprimand other Although the of the evidence. derance only perpetuates by unethical conduct cre- arrangement of the circumstances fee Herrera, immunity. ating false sense rec- and the appeared suspicious, Penuelas unfortunately, prior has failed to use his maintained Herrera was keeping ord reprimands wake-up as a call. nonexistent, if the evidence sloppy, Considering all the circumstances the claimed violations. failed to case, the relevant facts of this we indefi- nitely the license of Luis Herrera suspend Discipline. VI. possible law with no reinstate- practice in an The sanction to result filing months following ment for three action rests with the attorney disciplinary ap- shall opinion. suspension of this case. Iowa Su facts of each particular of law. ply aspects practice to all Bd. Ethics & Conduct preme Ct. of Prof'l Any application Ct. R. 118.12. (Iowa 1999). Carr, N.W.2d v. governed reinstatement shall be Court the cir determining In the sanction under Rule Costs are assessed to Herr- 118.18. case, of each we consider cumstances era. See 118.22. Ct. R. violations, for de “the need nature of terrence, mainte protection public, LICENSE SUSPENDED. bar as a reputation

nance of the

whole, prac and the fitness [violator’s] Supreme Iowa Ct. Bd.

tice law.” of Prof'l Lemanski, v.

Ethics & Conduct (Iowa 2000). 11, 14

N.W.2d apparent ap

It that Herrera practice of law fast and loose.

proaches the by the circum revealed This is II, Appellant, Bruce E. SAIN case, by the three of this but also stances v. suspension his reprimands, as well as prior COMMUNITY CEDAR RAPIDS Eighth practice of law before from the Rap Cedar DISTRICT SCHOOL a/k/a Appeals. See Iowa Su Circuit Court Community Schools, Appellee. ids Conduct preme Bd. Ethics & Ct. of Prof'l 2000) (Iowa Morris, No. 98-2273. (court attorney’s prior disci may consider Supreme Court of Iowa. history). Unfortunately, prior plinary change have done little reprimands 25, 2001. April disposition. Equally unfortu Herrera’s nate, only engaged has now not Herrera type of behavior

conduct which mirrors disciplinary prior

which resulted

H7 *4 Updegraff Anne E. Riley Tom Firm, P.L.C., Law Rapids, ap- Cedar for pellant.

Matthew G. Novak Thad and J. Collins Pickens, Barnes & Abernathy, Cedar Rapids, appellee. for CADY, Justice. appeal requires

This us to decide wheth- an action negligence er for should be rec- ognized upon based inaccurate information concerning requirements the course compete in intercollegiate sports at a Na- Collegiate tional Athletic Association (NCAA) Division I university as a fresh- allegedly man given high to a stu- school by guidance dent counselor. The district court no found cause of action as a existed matter of law granted summary judg- ment. light On review the facts student, most favorable to the we conclude summary judgment improperly was grant- ed. We reverse the decision of the district court and remand for proceedings. further Background I. Facts and Proceed- ings. High

Bruce Sain attended Jefferson Rapids junior School in Cedar during his years. and senior Jefferson is included within the Rapids Community Cedar require- the NCAA core course to meet member was a District. Sain School English. for ments at Jefferson team varsity basketball receiving a aspirations maintained year at his senior Jefferson began Sain major play basketball scholarship tri- During fall of 1995. first ac- many basketball He received college. satisfactorily enrolled in and mester he school, in- during high and awards colades English an course entitled completed basketball to the all-state cluding selection in- This course was “World Literature.” team. approved core cluded in the NCAA list registered He to take a English courses. at Jefferson counselor Sain’s Literature” dur- “English entitled course generally Bowen was Larry Bowen. was This class was the second trimester. ing credits high familiar with a core by the NCAA as approved by the imposed requirements course Sain, however, dis- course. was English incoming student-athletes NCAA Bow- class and met with satisfied with the sports as a freshman compete eligible to it add drop if he could en to determine which main- Division I institutions at those suggested course. Bowen English another One such membership in the NCAA. tain *5 course enti- English a different Sain take three complete to a student requires rule It was Communications.” tled “Technical by the approved English courses years of- in course modern communications NCAA, in mathe- as core courses as well first for the by the school district fered science, matics, the sciences. social year. 1995-96 school during the time high school maintains a list of The NCAA com- course would be the Bowen believed the satisfy which school courses for each in computers. interest patible with Sain’s for each disci- requirements course core that the Bowen told Sain Additionally, known as Form 48—H. This list is pline. by the as approved be NCAA course would the it offers submits courses highA school subsequently English a core course.1 Sain A approval. to the NCAA for to students from his “English dropped Literature” as the known NCAA separate organization in the “Technical and enrolled schedule respon- Clearinghouse is Eligibility Initial satisfactori- course. He Communications” the approving evaluating sible course, as well as another the ly completed Clearinghouse submitted. courses the final trimester. during course English those high for each school identifies “Techni- to include the The school failed core courses qualify as courses which list of course on the cal Communications” any reflect annually to updates the list ap- the NCAA for classes submitted This list is sent changes or additions. typically high school Although proval. Clearinghouse. high each year each list of its courses submitted a NCAA, the “Technical Commu- required some of the it left had satisfied Sain in it submitted prior to course off list disciplines nications” courses in the various the course was Consequently, needed 1995. year, his senior but beginning was Clearinghouse and by the approved dur- English courses approved take three However, Form 48-H. included on year of his senior the three trimesters ing testified in to Sain. Sain light most favorable deny Sain district The counselor and school him the "Tech- deposition told approved by the would be was told the course .Bowen "would course nical Communications” case are also critical facts in the NCAA.Other Clearinghouse an En- as summary by the NCAA passed purpose of dispute. For the in however, glish credit course.” the facts in a we consider judgment, approved against voluntarily the course had been two of was later NCAA the three universities in Iowa as a state dismissed. English approved core course. It was also against The action the school district by the National Council of Teachers of separate was based on negligence claims of English. and negligent misrepresentation under the During final high trimester Restatement of Torts section school, accepted Sain was offered and a 552(1) (1977). Sain claimed Bowen five-year full scholarship basketball provide breached a competent aca- University Northern in beginning Illinois demic advice concerning eligibility to fall semester of 1996. Pursuant to the participate Division I sports fresh- rules, letter of intent NCAA Sain man. He also claimed the school district agreed to enroll at Northern Illinois Uni- was failing to submit

versity and participate intercollegiate “Technical Communications” course to the sports university as a member of the men’s pre-approval. NCAA for exchange basketball team in full The school district summary moved for scholarship. ride athletic The Northern judgment. The granted district court University Illinois basketball program par- It negligence theory motion. found the ticipates in I Division of NCAA. was a claim for educational malpractice, graduated High Sain from Jefferson and determined required the claim was spring Shortly School of 1996. after be dismissed because a school counselor graduation, Sain received a letter from the has no to a student as a matter lawof Clearinghouse. NCAA The Clearinghouse to use reasonable care providing course *6 informed Sain that the “Technical Commu- It information. also found the claim for he during nications” course took the sec- negligent misrepresentation did not apply satisfy ond En- trimester did not the core to an educational setting, but was limited glish requirements. This meant two to commercial or business transactions. English of the three by courses taken Sain during year his senior had been accepted appeals. Sain He claims the nature of by the Clearinghouse, NCAA and Sain fell the relationship between a student and one-third credit short of the core English guidance counselor imposes a on the requirements participate in Division I counselor to use giv- reasonable care when basketball as a freshman. Sain and ing specific information about the course University requested Northern Illinois a requirements for college admission to or waiver request from the NCAA. The was participation in college athletics and sub- scholarship. denied and Sain lost his aAs mitting courses approval. to the NCAA for result, Sain was unable to attend Northern recognized He also claims the negli- tort of Illinois University during the 1996-97 gent misrepresentation enough is broad year compete school and basketball for hold a guidance counselor liable for provid- the school.2 ing specific per- information to a student brought

Sain against taining this action required to the courses and credits school district and The necessary the NCAA. claim pursue post-high goals. options 2. A years student several if eligibility declared otherwise available to ineligible compete as a freshman. One Sain, however, freshmen. did not have the option university is to enroll at the at the University funds to enroll at Northern Illinois expense years student's own and retain three expense. at his own eligibility opposed of athletic five to the by of a counselor student Scope of Review. II. placement particular of a in a student rulings on motions for We review class. of er summary judgment for corrections Teague Mosley, v. at law. rors Although there is no established 1996). (Iowa 646, 648 We “review N.W.2d malpractice, definition of educational our court to de record before the district categories three recognized reveal ac of material fact whether an issue termine complaints tion centers on about rea exists, ... the district court whether engaged by sonableness of conduct Howell law.” v. Mer properly applied the in providing educational institutions their (Iowa 1998). Co., 278, 280 ritt of teaching, supervising, basic functions testing placing, and students relation Malpractice. III. Educational ship performance the level academic begin considering nature We competency student. See Dan recog refused to Sain’s claim. have Dobbs, B. Law at The Torts 690- nize a cause of action Iowa for edu (2000) Dobbs]; Timothy [hereinafter Vanderloo, malpractice. Moore cational Davis, Examining Malprac Educational (Iowa 1986). 108, 113-15 Con tice a Cause Jurisprudence: Should properly court dis sequently, district Studentr-Athletes?, Action Created Be the action under Moore if Sain’s missed [hereinaf Denv. U.L.Rev. 61 (1992) recovery case theory of in this falls within theory ter alleges profession Davis]. negligence. parameters educational analogous al misconduct to medical and Moore, cat recognized In three legal malpractice, impose seeks to malpractice. of educational Id. egories provide level of on schools edu aca category The first involves basic Davis, appropriate cation the student. misrepresentation instruction or demic 69 Denv. at 61. U.L.Rev. Id. performance. the level of academic malpractice almost uni Educational placing category The second deals of action versally rejected as cause be in a place specific failing to student claim the issues framed must cause Id. The third cate setting. educational *7 context necessarily be answered in the of per of gory supervision concerns student principles duty those of and reasonable policy Id. identified five formance. the tort law of ness of care associated with make for our refusal to these cate reasons CenCor, Tolman, negligence. v. Inc. 868 reasons include gories actionable. These (Colo.1994). 396, we recog P.2d As 399 adequate of an of the absence standard Moore, nized in these can principles tort care, uncertainty determining damages, in difficult, nearly impos extremely if not placed poten the burden on schools sible, setting to an for a apply academic litigation probably that would tial flood of Moore, variety of reasons. 386 result, edu given the deference 114-15; Gupta see at New out its system carry cational internal 574, Hosp., Britain Gen. 239 Conn. general reluctance operations, (1996). 111, This, A.2d other regulated by to interfere in an area courts Moore, in discussed policy considerations Id. at 114-15. legislative standards. duty rejection of a of care argues action The school district Sain’s within an academic environment. supervision placement within the falls generally the claim in this case malpractice. Although It categories of educational the educational functions su- supervision the action relates to asserts involves pervision placement, it is unrelated distinguishable case is from Moore its policy most of the concerns in identified facts. categories malprac-

Moore. Unlike the Our Moore, recognize failure to claims tice described in the claim of mis- malpractice educational actually repre representation this case does not chal- sents a lenge determination that the methodology classroom or care theories of a of education. It is also school does not extend unrelated to aca- to the circum performance demic or stances which expected recognize the lack of fall within the skills. It does not categories We, intervene into the inter- malpractice. of educational operations, nal curriculum course, or academic de- recognize a school has a duty of institution, cisions of an any educational or care to a student under different circum assigned function of a school under state Thus, stances. schools or schoolteachers Finally, law. it does not interfere subject can be to liability negligence legislative policies standards and compe- failing to exercise reasonable care in su Instead, tency. the thrust of the action pervising students or maintaining danger specific asserts a act of providing specific ous conditions. See Anderson v. Webster requested by a student under Dist., City Cmty. 263, Sch. 620 N.W.2d circumstances which the school knew or (Iowa 2000); City Cedar Falls v. Cedar should have known the student relying was Dist., Falls Cmty. 11, Sch. 17- upon the information qualify for future (Iowa 2000). A clearly owes a opportunities. educational athletic In this duty of reasonable care ato student. The context, the resolution of the claim does question we face in this case is whether not require courts to daily interfere to exercise reasonable care ex operation of the school challenge or tends to either providing information to a policies education. See Dobbs student under the alleged circumstances Furthermore, there is little fear that this case submitting courses to the appropriate an standard of care cannot be NCAA. articulated. See id. The claim is more compatible with other claims for misrepre- Negligent Misrepresentation— IV. against professionals sentation by clients Providing Information. sought

who have out expertise. their In case, this under the state the facts we The tort of negligence has developed must accept, Sain looked to advice from into broad and open-ended cause of ac- Bowen, who was in a position provide tion. See Dobbs at 257-58. Unlike Thus, requested advice. the same dif- the intentional trespassory torts that are ficulties of applying negligence standards generally geared conduct, specific toward to claims of educational malpractice do not *8 cause of negligence action for may find in exist this case. support in any most conduct. See id. Al- though the familiar elements reject duty, must be careful not of to all care, cause, breach of proximate claims that arise out of a school environ- and dam- ages established, ment must always under the umbrella of be any educational most Instead, malpractice. Id. at 692. circumstances spe- exempted by a special cific facts of each case rule or a must be statute can be prove considered used to light in of policy 112, § the relevant these concerns that elements. See id. at 264-65. rejection drive the of malprac- Negligence educational clearly emerged has as “the tice light actions. See id. In of those central focus of modern tort law.” Peter policy considerations, Lake, we conclude this F. Common Duty Law in Negli- negligent misrepresentation has taken the The Recent Consolidation gence Law: of Analy- Expansion on the limiting group persons Consensus form of “the of of Duty and the New Conservative sis liable, may be [a] whom defendant short of of Policy Liability Limiting Use Consid- foreseeability of possible harm.” Kee- of erations, 1503, Diego San L.Rev. 107, § ton at 745. (1997). of tort expansive nature negli recognized We first tort of applying challenged courts gently giving misinformation with this negligence accommo- principles liability Ryan scope limitation on of human growth date into new areas its 1969). Kanne, (Iowa interaction, limit the tort properly but to well. id. case, within certain boundaries as permitted party that we a third In at 1504-05. reasonably upon who relied financial prepared by an accountant to statements recog- is

Although misrepresentation negligence against of maintain a action separate nized and cause as distinct action, misrepresentation negli- based on accountant for misinformation gent typically conduct has been addressed statements when the accountant knew the negli- the framework of a claim for within was for benefit information intended per- conduct has caused gence when the party. Ryan, of the third damage. W. injury property sonal or pro recognized 170 N.W.2d at 403. We al., Page et and Keeton on Keeton Prosser accountants, such as abstrac fessionals 105, 107, 725-26, § § the Law Torts at tors, attorneys care in owe Keeton], ed.1984) (5th [hereinafter at 745 third supplying information foreseeable need treat Courts have never found a as of a limited class of parties members misrepresentation separate persons contemplated who would be liability for when the interference basis Id. rely upon at use information. damage. personal property consists of Thus, joined the drafters of the 402. hand, § Id. at 726. On the other (Sec tentative draft the Restatement misrepresentation negli- on when based ond) of section 552 to the extent Torts solely in an gent acts results interference right they recognized “the to recover interests, intangible economic more for negligence persons whose bene for have de- recovery restrictive rules of been guidance the knows the fit and accountant This veloped. Id. has been Ryan, intended.” for mainly liability due to the fear that of using at 403. Instead foresee virtually misinformation could unlimited ability scope to limit the harm unknown claimants under the include care, foreseeability upon a applica- duty traditional limitation we relied stricter negligence claims. See Restatement ble to knowledge. standard of (The (Second) scope of Torts 552 cmt. negli- to recognize We have continued liability negligent misrepresentation for following gence claims misinformation pecuniary gov- harm is not resulting utilize Restate- Ryan, and continue to principles negligence erned same help section 552 to ment resulting negligent misrepresentation Ernst Freeman v. & define the tort. See A harm. restricted rule physical *9 (Iowa 1994) 835, N.W.2d 837 Young, 516 misrepre- for liability negligent is followed misrepresen- negligent of tort of (genesis in be- resulting pecuniary harm sentation (Second) of is Restatement tation liability.); the fear of unlimited cause of 552). 107, Thus, provides: This section section § at 745. tort of Torts Keeton 124 who, business, in the course of his tort negligent

One of im misrepresentation any oth- profession employment, or or in case, a in poses duty particular of care a in he pecuni- er transaction which has a distinguish between those transactions interest, ary supplies false information a where defendant is in the business or guidance for the of others in busi- their of profession supplying to oth information transactions, subject liability is ness ers from those are transactions that arm’s pecuniary by for loss caused to them length and adversarial. See Molo Oil Co. justifiable upon their reliance infor- Sales, Inc., City v. River Truck Ford 578 mation, if he^fails to exercise reasonable (Iowa 222, 1998); N.W.2d 227 Fry v. in competence care or com- obtaining or Mount, (Iowa 263, 554 N.W.2d 265-66 municating the information. 1996); Freeman, see also N.W.2d at 516 (Second) 552(1). § of Restatement Torts 838; Miller, 905, Haupt v. 514 N.W.2d 910 (Iowa 1994); Meier, 454 at N.W.2d 581-82. actions, negligence As with all recognize the former circumstances negligent misrepre an essential element of justify the imposition duty of a of care is that sentation the defendant must owe a person because a transaction between a in duty of care to plaintiff. In the con profession the business or supplying of negligent misrepresentation, text of this information person seeking and a informa person supplies means the who infor compatible special tion is to a relationship. duty mation must owe a person to the Meier, 581; See 454 N.W.2d at see 2 whom the information is Al provided. al., Fowler V. et Harper The Law Torts though the supports Restatement a broad 7.6, (2d ed.1986) § at 412-13 view, [hereinafter er we have determined that this Harper] (“remedy only misrepre arises when the information provid principally sentation by against [is] ed in those who persons the business or profession in an essentially advise supplying nonadversarial ca information to Hen others. Co., pacity”). course, A Supply special dricks v. Great relationship, Plains 609 (Iowa 486, 2000); important is an N.W.2d see factor to the impo Meier v. Inc., 576, Alfa-Laval, of a duty 581 sition of care under claim (Iowa 1990) (providing negligence. false information is ex J.A.H. rel. R.M.H. v. P.C., if person Assocs., 256, not actionable is not the Wadle & 589 N.W.2d (Iowa 1999). profession Moreover, or business inform 259 supplying person ation).3 Thus, when deciding whether the profession supplying information for 1997) (same). 3. language of section 552 ex does not The comments to section 552 pressly provide applies that the tort imposition indicate that the of a of care persons profession who are in the business or supplying upon information is based Instead, supplying requires information. it presence pecuniary of a interest the trans- provider supply "in the (Second) action. Restatement business, profession employ course of his or c, are, then, d. ways cmts. There two under ment,” supply or to any information "in other requirement. the Restatement establish this transaction in has pecuniary which he inter supplied person by The information can be 552(1) est.” Restatement Torts information, provide whose business it is to (1977); see State Bronster v. United States person pecuniary or the otherwise has a inter- 32, Corp., Steel 82 Hawaii 919 P.2d 307- person est in transaction in which the (tort (1996) applicable supplying when in Id.; supplies the information. State see formation either for the of others in Bronster, Notwithstanding, 919 P.2d the course of transaction which one has a interest, persons we have limited tort to in the pecuniary or in the course one's business, profession/or profession employment); supplying business informa- Smith Cos., (Minn. Brutger tion to others.

125 105, § dealings. Keeton at 726. Con advisory in an See of acts guidance the others thought of manifestly sequently, generally is aware the use the tort is to capacity and in- put, only will be apply the information to business transactions. See that purpose. 758, it that See supply Pickering, for Pickering tends v. 434 N.W.2d (Second) § (S.D.1989) (claim Torts 552 cmt. of Restatement against 762 husband a; 472, 1350-51; at 2 also Dobbs see wife for did negligent misrepresentation 7.6, person at Such is Harper 405-06. transaction); not from a arise business the use position weigh in a for also Omer, 423, 952 Robinson v. S.W.2d 428 magnitude and against information (Tenn.1997) (advice supplied guid for was might attend probability of loss affairs, business); in personal ance not see if it is incorrect. use of the information D.M.W., 284, also 596 N.W.2d G.A.W. (Second) § 552 of Torts cmt. Restatement (Minnesota (Minn.Ct.App.1999) 290 courts circumstances, a. these the fore- Under only recognized negligent have the tort of support impo- harm seeability helps of misrepresentation in a or com business duty of J.A.H. ex rel. of a care. See sition hand, mercial setting). On the other (reasonable R.M.H., 589 N.W.2d at 258 applied observe that some courts have foreseeability person who is harm contexts, adoption. tort other such as injured deciding is a factor in whether Ernst, 193, 538 Pa. 647 See Gibbs v. A.2d exists). Additionally, pecu- legal duty 882, (1994); M.H. v. Fami 891-93 Caritas in a niary person interest which a has (Minn. Servs., 282, ly 488 N.W.2d 287-88 business, profession, employment or which 1992); Soc’y Meracle v. Children’s Serv. an information addition- supplies serves Wisconsin, 532, 149 Wis.2d 437 N.W.2d al of care. imposing basis for See (1989). Yet, jurisdiction 536-37 no § 552 Restatement cmts. recognized in the a school a tort context of c, hand, information given d. the other On a student. counselor and gratuitously or to a different incidental id.; examination of both sec duty. no Our imposes service such see Meier, (defen- tion 552 our own cases reveals the at 581-82 N.W.2d selling servicing requirement in business of commercial dant business or information). merchandise, actually sub supplying the tort concern the does ject the transaction between the matter of Thus, approach application our in the defendant, requires but plaintiff and negligent misrepresentation has the tort of the defendant to be the business to consider facts of each case to been for the profession supplying information if the the busi- determine defendant fundamen guidance of others. This is the information profession supplying ness or requirement support imposition tal Hendricks, others. See N.W.2d negli all of a which is essential for duty, 265; 492; Fry, Haupt, 554 N.W.2d at Alderson v. Rockwell gence claims. See at 910. The facts to (Iowa 1997) Corp., Int'l however, tort, traditionally have arisen (“[o]ur negligent rule is that mis general only the context of commercial transac- section representation under Restatement Historically, those cases which were tions. applies only to a defendant who is in the tort arose responsible developing profession] supplying the business [or setting, from a business or financial others”). Additionally, misrepresenta- recognition the infor language requires of section 552 from the separate begin- tion as a tort has supplied mation “for the to not largely confined to financial or ning been others,” guidance but “for the harm commercial in the course business *11 benefit, of others in their business transactions.” does not her own act his or but (Second) 552(1). provides Restatement the of stu- information for benefit Yet, Furthermore, requirement this additional also does dents. in in- matters subject high not exist to restrict the volve matriculation from school to Instead, college, high clearly information to business matters. a school counselor as- supplied role, in advisory the “for the others sumes an is aware of use the information, requirement their business transactions” the knows the student predominantly that the tort is recognizes ap- relying upon the information provided. plies Additionally, by to where the information the paid situations counselor is the advice, in plaintiff the its rela- to supplied system provide harmed school such parties, opposed with an tions third as to indirect financial interest in provid- harm to a in plaintiff ing its relations with the the information. See Restatement provider of the information. State Torts cmt. d (pecuniary Bronster, indirect). may Thus, at 919 P.2d 311. This means the interest coun- the apply provide tort does not when a di- selor not gratuitous defendant does informa- provides rectly plaintiff information to a in tion expect that the counselor would not Furthermore, the course of a transaction between the the to rely upon. student parties, two which information harms the information is not incidental some to in plaintiff the transaction with the defen- more provided central function or service (in- Meier, dant. See Fry, 554 N.W.2d at 265-66 the counselor. See 454 N.W.2d given plaintiff by formation was to at 581. in the only particu- defendant context of Considering the which rationale lar transaction parties, between the supports imposition of a duty of care guide plaintiff generally). This situation is on a in person or profession business compatible approach our that there is information, of supplying we discern no no on imposed parties who deal at why high reason school counselor should length. arm’s Id. at 265. not fall within the as in category person We conclude that context of the profession supplying information transaction this case does not draw the imposition others to -of a scope case outside negli- the tort of reasonable care manner or she he Instead, task, gent misrepresentation. our provides information to students. in other cases which a claim assert should tort not confine the to traditional negligent misrepresentation, deter- commercial when transactions the ratio if the high mine defendant —a coun- school nale for tort it applied allows to be selor in this profession case—is of beyond those factual which circumstances

supplying information to others. originally gave Ryan rise to the tort. In question, In deciding this we we applies observe indicated the tort accountants, that those same characteristics which exist but logically can be extended a person when is found to be the busi- to other professional purveyors of informa (tort ness tion. supplying Ryan, others at 402 could high abstractors); also exist the case of a apply attorneys school counselor. The counselor and student see Fry, For have a relationship beyond purposes which extends negligent misrepre tort of sentation, a relationship in an arm’s length high found conclude coun school advisory person transaction. It is in nature selor profession is also in the not adversarial. The counselor supplying information to others. *12 supply counselor intended to the informa that our ex

We understand recipient tion knew to or intended negligent misrepre the tort of pansion of through it and reli supply to loss suffered high counsel- to include a sentation ance the information in a upon transaction impose will relationship and a student or the counselor intended the information to school counselors. greater burden on v. Int’l influence. See Knutson Bitterroot course, concern, of that this There is a (Mont.2000) Inc., 554, 5 Sys., P.3d 560 chilling have a effect may greater burden (section 552(1) requires plaintiff that counselors, may who refrain on school justified was relying upon informa providing from information because tion); Collins, also 20 see Rubinstein v. However, any con potential liability. for (5th Cir.1994). 160, Additionally, F.3d 172 by the further limita cern is diminished applies only the tort to observe 552(2), in section which expressed tions false information and does not to apply as follows: provides personal opinions or statements of future v. intent.4 See Darst Illinois Farmers (2) (3), Except as stated Subsection (Ind.Ct. Co., 579, Ins. 716 n. 6 N.E.2d 584 (1) liability is stated Subsection (claim App.1999) failed because statements limited loss suffered opinions); made were Wilkinson v. Sho 194, Inc., 1149, ney’s, 269 Kan. 4 P.3d 1165 (a) by person or one of a limited (2000) (tort negligent misrepresentation for persons whose benefit group apply does not to statements of future guidance supply and he intends to intent); Washington v. Trimble State or that the the information knows 88, Univ., 259, 140 P.2d 264 Wash.2d 993 it; recipient supply intends (2000) (claim failed because statements false); actually made were not see also (b) through upon it in a trans- reliance Restatement 552 cmts. he the informa- action that intends b, Finally, only imposed e. the standard is or knows that the tion to influence reasonableness, one and the elements of in a recipient so intends or substan- must proximate damage also be cause tially similar transaction. (Second) of Restatement Torts shown. (3) one is liability who under (limited damages for 552B duty

public give Thus, the information limita these misrepresentation). help promote tions will to continue by any of the extends to loss suffered in important public policy encouraging persons for benefit the class of whose high school counselors teraction between created, any of the transac- students, and maintain flow protect it is intended to tions which necessary information to students. them. have observe that some states We also Thus, liability negligent misrepresenta- for and teach giving enacted statutes schools by a per- liability. tion is limited to harm suffered immunity any ers from Dist., 68 Compton v. Sch. son whose Brown benefit Unified case, v. Credit tag circumstances. See Bittel Farm In whether the counsel- this the issue 651, Kansas, P.C.A., 265 Kan. alleged was Servs. Cent. or's statement a statement of 491, (1998); 501 see Wilkinson present prediction has not been 962 P.2d fact 1149, Inc., (Kan. Shoney’s, 4 P.3d 1165 may question law v. raised. This issue Nevertheless, courts, 2000). pre it is not an issue depend but will on appeal particular on at this time. language used but all the surround- sented 128 171, 114, Cal.Rptr.2d provide to the informa

Cal.App.4th apply failure (1998) tion, (immunity misrepresentations from to the but disclosure of information. scope employment); P’ship made Hen- See Int’l within Outlook Windows York Univ., 552, (D.Neb. Corp., F.Supp.2d dricks v. Clemson 339 S.C. 896-97 (tort 2000). Thus, (S.C.Ct.App.2000) imposition S.E.2d of a act a claim of providing claims shields educational institutions false informa *13 acts); liability for negligent support imposition from see tion does not the of a 259, disclosing duty Dobbs for not information. case, In this we find has sub Sain claim can negligence for be A sufficient to withstand sum mitted facts on both based actions and inactions. How claim mary judgment guid on the that the ever, liability pro for the failure to act to that negligently ance counselor told him a largely tect another from harm is restrict English would specific course be certified ed to those where is a situations there by Clearinghouse. NCAA rela the The parties. between special relationship the high between school counselor tionship the v. Alpha Lambda Chi Fra Garofalo student, activity together and the (Iowa 647, 2000); 616 ternity, N.W.2d 652 engaged by Sain and the counselor 234, Hogan, v. Bohan 567 N.W.2d 236 case, give duty this is sufficient to rise ato (Iowa 1997); Rains, v. Fiala N.W.2d 519 for counselor to use reasonable care (Iowa 1994). 386, It is essentially informing when a student that a will class upon relationship a dependence based of by be approved the NCAA. We continue to expectation protection. and an of See Re the tort of negligent misrepresen confine statement 314A cmt. b persons tation to in the business or profes (1965). others, sion supplying of information to Nevertheless, duty imposed a of care is high but find that a school counselor falls protect against to risk foreseeable of within that language policies because harm. The failure of a school to district duty which of a imposition approval by submit course for NCAA person applies high care on such a to a Clearinghouse would not increase the haz- school counselor. taking ard of student an unapproved If a course. school fails to submit a Negligent Misrepresentation— V. course, the course would not be included Failure to Class. Submit approved on the list. The absence of the The prong negli second of Sain’s course from the would reli- list not induce gence upon claim is based the failure ance, and it would not make foreseeable the school district include the to “Technical harm that would result to a student Communications” on course the list of an taking unapproved course under courses submitted to the Like the NCAA. that the belief course was fact approved. claim, first Sain asserts the school district Thus, duty there is no students for a duty had a submit care to the course high school district or a school counselor and breached the when it to do failed Clearing- submit courses to the NCAA so. asserts internal policies Sain Garofalo, house. See at 654 N.W.2d the school to all courses approv submit (failure policy fraternity to follow does Clearinghouse al the NCAA supports tort); give rise to an actionable Smith duty. such a City Dubuque, (Iowa 1985) (breach begin We by recognizing procedures of internal action). misrepresentation tort negligent give does does rise to cause of are in the properly professionals court cators business conclude the district on claim. summary judgment they this supplying hope information. And granted jobs information-giving take their serious- VI. Conclusion. generation ly, for the future the next district court We conclude on depends them. summary on judgment granting erred in is, question when academic advice misrepresentation

the claim of awry, permitted goes should student high provided by involving seek from the courts? The an- relief student. counselor guidance school date, concedes, majority swer negligent misrepresentation The tort of always “no.” Good reasons been abound high for a enough to include broad Vanderloo, this decision. See Moore v. counselor use reason (Iowa (dis- 1986) 113-15 specific information providing able care in *14 claim mal- missing alleged of educational counselor guidance a when the student are practice). ill-equipped pass the Courts knowledge specific need judgment the on the wisdom and value of provides information information in of a counselor- curriculum. Id. have to the the course school’s chosen We student reason relationship, and student historically student thus been to do so. disinclined cir ably upon the information under relies effectively jettisons The this majority knows which the counselor cumstances that by theorizing guidance sound doctrine relying know the student is or should that counselors, being in business of fur- the we Additionally, upon the information. information, nishing within the ambit come properly grant district court conclude the (Second) of section 552 of Restatement summary judgment on the claim of ed liable, They may majority Torts. misrepresentation involving holds, misrepre- tort of negligent for the failure to submit course school’s attach liability sentation. For under Clearinghouse approval. rule, however, must be misinformation AND REMANDED. REVERSED guidance of others in supplied “for ” Restate- their business transactions. justices except All concur NEUMAN (emphasis TERNUS, JJ., ment dissent. who added). here, think, major- I that the It is NEUMAN, (dissenting). Justice logic experience. flies in the. face of ity’s majority’s I The respectfully dissent. thorough, decision, while methodical and opinion, majority’s one accept To experience. exalts over ultimately logic mentoring willing must be view spells disaster for the law. result guidance between a counselor relationship For, know, the life of the law as we all no than a busi- and a different student experience.5 logic but purveyor relationship between ness I disagree information and consumer.

Experience teaches us that may in an live premise. with that along myriad others counselors— me age, experience but tells public dispense volumes our schools— dif- knowledge in school is basis, sharing, it daily some of information on Indeed, information in than the sale of ferent perhaps good. not so good, some marketplace. majority forcefully edu- argues, as the Holmes, Jr., (1881). Law The Common 5. Oliver Wendell I am “flood- also concerned about the

gates” discouraged us from argument direction in

moving this Moore. See

Moore, Implicit at 115. that,

majority’s reasoning is the suggestion eligibility

when it to NCAA rules comes scholarships,

and athletic is the business

name of But the action game. cause of today will recognize not be limited to students, apply

athletes. It will to all

whether music or talented debate of encouraging

academics. Instead sound

academic will guidance, today’s decision

discourage advising altogether. I cannot

join it. J.,

TERNUS, joins this dissent.

Iowa SUPREME COURT BOARD OF

PROFESSIONAL ETHICS AND

CONDUCT, Complainant, STOWERS, Respondent.

Michael R.

No. 01-0014. Court

Supreme of Iowa.

April

Case Details

Case Name: Sain v. Cedar Rapids Community School District
Court Name: Supreme Court of Iowa
Date Published: Apr 25, 2001
Citation: 626 N.W.2d 115
Docket Number: 98-2273
Court Abbreviation: Iowa
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