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UNITED STATES V. NEUSTADT, 366 U. S. 696 (1961)

U.S. Supreme Court

United States v. Neustadt, 366 U.S. 696 (1961)

United States v. Neustadt

No. 533

Argued May 2, 1961

Decided May 29, 1961

366 U.S. 696


Under the Federal Tort Claims Act, the United States may not be held liable to a purchaser of a home who has been furnished a statement reporting the results of a negligently inaccurate inspection and appraisal of the property made by the Federal Housing Administration for mortgage insurance purposes pursuant to the National Housing Act of 1934, as amended, and who, in reliance upon such statement, has been induced to pay a purchase price in excess of the fair market value of the property, since such a claim is one "arising out of . . . misrepresentation," within the meaning of 28 U.S.C. § 2680(h), which precludes recovery on claims arising out of negligent, as well as willful, misrepresentation. Pp. 366 U. S. 696-711.

281 F.2d 596 reversed.

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