Federal Court - Christian Aboriginal Infrastructure Developments ...

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[1037] Was that reliance reasonable
[1038] The jurisprudence provides guidance as to what constitutes “reasonable reliance”. In
Hercules Managements Limited at para. 43, the Supreme Court of Canada identified five general
indicia of reasonable reliance as follows:
(1) The defendant had a direct or indirect financial interest in the transaction in respect of
2010 FC 495 (CanLII)
which the representation was made;
(2) The defendant was a professional or someone who possessed special skills, judgment or
knowledge;
(3) The advice or information was provided in the course of the defendant’s business;
(4) The information or advice was given deliberately, and not on a social occasion; and
(5) The information or advice was given in response to a specific inquiry or request.
(1) Direct or Indirect Financial Interest
[1039] The seminal cases on negligent misrepresentation have arisen in the commercial context
between private actors. As such, the discussion of the factors indicating that there was reasonably
foreseeable reliance have focused on that financial context. When dealing with the Government, the
factors are somewhat different.
[1040] In Meates v. Attorney-General, [1983] NZLR 308, the New Zealand Court of Appeal found
that in all cases a financial interest is not necessary. In Meates, the political benefit to the
Government was considered by the Court. In plain terms, when dealing with the Government a