Incomm Financial Services, Inc.v.Global Payments, Inc.
Incomm Financial Services alleged that Global Payments supplied fraudulent electronic payment transactions through the Visa network, causing Incomm to credit more than one and a half million dollars to prepaid-card holders after thousands of unauthorized reversal transactions. Incomm sued for negligence and negligent misrepresentation. The trial court dismissed both counts. The Court of Appeals affirmed dismissal of negligence but reversed dismissal of negligent misrepresentation. The court held that Incomm alleged facts that could establish a duty to exercise reasonable care in supplying transaction information to a foreseeable recipient and that the claim was not limited to professional-negligence settings. Although the complaint needed to show more clearly how Incomm relied on the supplied information, the allegations did not establish with certainty that no provable facts could support relief. The court therefore directed the trial court to treat the dismissal motion as a motion for a more definite statement on reliance. The negligence count remained dismissed because Incomm had not identified a separate theory beyond the duplicative misrepresentation claim. The mixed disposition preserved the technology-related economic-loss claim while requiring more precise pleading.
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