Wingate Land, LLC, the owner of two residential properties, entered into contracts to sell the properties; each buyer sought to qualify with a lender for a home loan; and the lender hired an appraisal company, ValueFirst, Inc., owned by James D. Smith, a certified real estate appraiser, to do appraisals to determine the fair market value of each property as security for the loans. After the appraisals found that the fair market value of each property was less than the contract price, Wingate and the purchasers closed the sales for a reduced price that qualified the purchasers for secured loans. Wingate then sued ValueFirst and Smith, individually, for the difference between the original contract price and the reduced sales price on each property claiming that Wingate was forced to sell for the reduced price because ValueFirst and Smith negligently appraised the properties below fair market value. In a separate count, Wingate alleged that ValueFirst and Smith engaged in wilful misconduct justifying the imposition of punitive damages by refusing to alter the appraisals after being told by Wingate that they were negligently below fair market value. Wingate appeals from the trial court’s grant of summary judgment in favor of ValueFirst and Smith. For the following reasons, we affirm. 1. ValueFirst and Smith were hired by the lender to do the appraisals for the purpose of allowing the lender to determine the fair market value of each property to be used as security for the loans. Although Wingate was not in privity with ValueFirst or Smith, it claims that, in the absence of privity, ValueFirst and Smith are liable on the negligence claim under the rule enunciated in Restatement of Torts 2d, § 552 for negligent misrepresentation resulting in economic loss. As adopted in Robert & Co. Assoc. v. Rhodes-Haverty Partnership , 250 Ga. 680 300 SE2d 503 1983, this rule provides that one who supplies information during the course of his business, profession, employment, or in any transaction in which he has a pecuniary interest has a duty of reasonable care and competence to parties who rely upon the information in circumstances in which the maker was manifestly aware of the use to which the information was to be put and intended that it be so used. This liability is limited to a foreseeable person or limited class of persons for whom the information was intended, either directly or indirectly. In making a determination of whether the reliance by the third party is justifiable, we will look to the purpose for which the report or representation was made. If it can be shown that the representation was made for the purpose of inducing third parties to rely and act upon the reliance, then liability to the third party can attach. If such cannot be shown there will be no liability in the absence of privity, wilfulness or physical harm or property damage. The additional duty that this rule imposes may be, of course, limited by appropriate disclaimers which would alert those not in privity with the supplier of information that they may rely upon it only at their peril. Id. at 681-682. The rule established in Robert & Co. does not expand professional liability for negligence to an unlimited class of persons whose presence is merely “foreseeable.” Badische Corp. v. Caylor , 257 Ga. 131, 133 356 SE2d 198 1987. “Rather, professional liability for negligence . . . extends to those persons, or the limited class of persons who the professional is actually aware will rely upon the information he prepared.” Id. As explained in Robert & Co. , “courts have been reluctant to extend liability in negligent misrepresentation cases where no privity appears and where the loss was merely economic and involving neither physical harm nor injury to property. An exception has been carved out in those cases where a known third party’s reliance was the desired result of the representation.” Robert & Co. , 250 Ga. at 681.
Wingate alleged that, because ValueFirst and Smith negligently appraised the property below fair market value, it suffered economic loss, not physical harm or property damage. As to the negligence claim, the issue presented on summary judgment was whether the claim was viable under the rule established in Robert & Co. , supra. To prevail at summary judgement under OCGA § 9-11-56, ValueFirst and Smith as the moving parties must demonstrate that there is no genuine issue of material fact and that the undisputed facts, viewed in the light most favorable to Wingate as the non-moving party, warrant judgment as a matter of law. Lau’s Corp. v. Haskins , 261 Ga. 491 405 SE2d 474 1991.
