To have its schools valued for insurance purposes,a school district hired a firm of surveyors to give it a statement of value.To prepare the report,the surveyors took the relevant measurements,which were then given to a statistical tabulating company that does calculations based on the measurements.Surveyors always use the services of such tabulating companies.An error was made in the calculations,so the surveyors' report was wrong.Therefore,the buildings were underinsured.When one of the school buildings was destroyed by fire,the school district did not get sufficient funds from the insurance company to rebuild it.On these facts,which of the following is true? (Assume that the school district has the ability to sue and be sued in court.)

Question

Quizplus · Accepted Answer

The school district can successfully sue the statistical tabulating company for negligent misstatement, causing economic loss. The surveyors cannot be sued for nuisance as they did not cause any unreasonable interference with the school district's use and enjoyment of their property. The insurance company cannot sue the statistical tabulating company for nuisance as they did not have any direct relationship with each other. The school district can sue the statistical tabulating company as they were the ones who made the calculations that led to the underinsurance, causing economic loss to the school district. This action would not likely be commenced in Small Claims Court as the amount of damages would likely exceed the jurisdictional limit.

To Have Its Schools Valued for Insurance Purposes,a School District