Also known as:justifiably rely · justifiably relied · reasonable reliance
Written by attorneys · grounded in primary & secondary sources — see below
Action or inaction by a party in response to another's representation or conduct when the circumstances render that response reasonable. The reliance must induce a change in position that the law protects to avoid injustice.
Sources & Authorities· 7 primary sources
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How it applies
Common Examples
6
Easement Extinguished by Servient Owner Reliance
Jorge Juarez owned the servient parcel crossed by an easement held by Jennings Forge. Juarez built a permanent fence across the path after observing the dominant owner ignore the easement for years. The dominant owner later sought to reopen the path but the court found the servient owner's construction extinguished the easement.
Oral Land Contract Enforced After Buyer Performance
Jonathan Jaffe orally agreed to buy a parcel from Juarez Holdings. Jaffe paid the price and took possession while the seller remained silent. When the seller later refused to convey title citing the statute of frauds, the court ordered specific performance.
Oral Servitude Enforced After User Investment
Julia Jensen permitted Joanna Jung to run a pipeline across her land. Jung installed costly permanent equipment in reliance on the permission. When Jensen later revoked access, the court recognized an enforceable servitude.
Evidence Admitted Under Good Faith Reliance
Officers obtained a warrant from a neutral magistrate and searched a warehouse. The warrant later proved defective for lack of probable cause. The court admitted the seized evidence because the officers had relied on the warrant.
Physical Harm From Negligent Information
Jada Jones received a safety report from Jimenez Motors stating a vehicle part was defect-free. Jones relied on the report and drove the vehicle, suffering injury when the part failed. The court held the company liable for the resulting harm.
Mistake of Law Defense From Official Opinion
Justin Jarvis obtained a written opinion from the state regulator stating his planned conduct was lawful. He proceeded with the conduct in reliance on the letter. When the opinion was later withdrawn, the court recognized a defense to the resulting charge.
Common questions
Frequently Asked
5
How does justifiable reliance differ from reasonable reliance in misrepresentation claims?+
Justifiable reliance focuses on whether the plaintiff was entitled to rely given the circumstances and any red flags, rather than applying a purely objective reasonable-person standard. Courts treat it as a limit on duty rather than a form of contributory negligence. A plaintiff may still recover even if careless provided the reliance was justified under the facts.
Does justifiable reliance require a writing when the statute of frauds applies?+
No. When a party changes position in justifiable reliance on an oral promise concerning land, courts may enforce the promise despite the statute. The reliance and resulting injustice supply the equitable basis for enforcement.
Is justifiable reliance an element of both fraud and negligent misrepresentation?+
Yes. Both torts require the plaintiff to prove actual reliance that was justifiable under the circumstances. The requirement ensures the misrepresentation caused the harm and limits liability to cases where the recipient was entitled to act on the statement.
Can a buyer justifiably rely on a seller's statement of future intention?+
Yes, when the statement concerns the seller's present intention about a material matter and the buyer has reason to believe the intention will be carried out. The reliance remains justifiable even though the subject involves future performance.
Does justifiable reliance protect a party who receives an erroneous official statement of law?+
Yes, when the statement comes from the officer or body charged with interpreting the law and the reliance is reasonable. The defense applies even though the statement is later withdrawn or found invalid.
on a misrepresentation, see Allgood v. R.J. Reynolds Tobacco Co. , 80 F.3d 168, 171 (5th Cir.1996); Burroughs v. Jackson Nat’l Life Ins. Co. , 618 So.2d 1329, 1332 (Ala.1993), while…
justifiable reliance
.” (3 Witkin, Cal. Procedure (2d ed. 1971) Pleading, § 578, p. 2217.) Accordingly, the term is essentially a label affixed to a normative conclusion.[^maj-4] Three considerations bear on…
, that is, to the incurring of costs by National Metal Crafters in
reasonable reliance
on assurances by Wisconsin Knife Works that late delivery would be acceptable. And although there is evidence of such
reliance
, it naturally was not a focus of the case, since the issue was…
by the physician on misrepresentations or concealment by the manufacturer of [a] device constitutes
justifiable reliance
by the patient."); Reyes v. Wyeth Labs. , 498 F.2d 1264, 1276 (5th…
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