Williams v. Smith
Annotate this CaseRespondent brought a claim against Appellants, the University of Minnesota and Orlando Smith, the University's men's basketball coach, alleging that Smith negligently misrepresented that he had authority to hire Respondent, and that Respondent suffered damage. The jury found in favor of Respondent and awarded damages. The court of appeals affirmed. At issue on appeal was whether the Supreme Court, as a matter of public policy, should extend the protection against negligent misrepresentation to prospective employees of the University, which is a constitutional corporation and agency of the state. The Supreme Court reversed, holding that when a prospective government employment relationship is negotiated at arm's length between sophisticated business persons who do not have a professional, fiduciary, or other special legal relationship, the prospective employee is not entitled to protection against negligent misrepresentations by the representative for the prospective government employer.
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