Liability for verbal misrepresentation
2012, c.31, s.12
152(1)Where a person makes a verbal statement to a purchaser of securities that contains a misrepresentation relating to the securities purchased and the verbal statement is made either before or contemporaneously with the purchase of the securities, the purchaser
(a)
shall be deemed to have relied on the misrepresentation if it was a misrepresentation at the time of purchase, and
(b)
has a right of action for damages against the person who made the verbal statement.
152(2)No person is liable under subsection (1) if the person proves that the purchaser purchased the securities with knowledge of the misrepresentation.
152(3)No person is liable under subsection (1) if the person can establish that the person cannot reasonably be expected to have known that the person’s statement contained a misrepresentation.
152(4)No person is liable under subsection (1) if, before the purchase of the securities by the purchaser, the person notified the purchaser that the person’s statement contained a misrepresentation.
152(5)In no case shall the amount recoverable under this section exceed the price at which the securities were offered to the public.
152(6)In an action for damages under subsection (1), the defendant is not liable for all or any portion of the damages that the defendant proves do not represent the depreciation in value of the securities as a result of the misrepresentation relied on.
152(7)The right of action for damages conferred by this section is in addition to and without derogation from any other right the purchaser may have at law.
2007, c.38, s.162; 2012, c.31, s.13