Hedley Byrne v Heller [1964] AC 465

Court: House of Lords 

Basic Facts: Hedley Byrne (C) sought financial information about a client, Easipower, from Heller and Partners (D), who provided it negligently but with a disclaimer of responsibility. Relying on this information, Hedley Byrne suffered financial loss when Easipower went bankrupt. 

Issue for the Court: Can someone be liable for an honest but negligent misstatement that causes another person pure economic loss? 

Held: D is not liable to C in negligence

• Lord Reid: A special relationship, even without a contract, can create a duty of care if it was reasonable for the claimant to rely on the defendant's statement. 

• Lord Morris: Confirmed that a duty of care arises when someone with special skills undertakes to provide advice or information, knowing that the other party will rely on it. 

• Lord Devlin: Supported the view that liability for negligent misstatements arises from a relationship "equivalent to contract" or from an assumption of responsibility. 

Key Issues: 

• Negligent Misstatement: Established that a party can be liable for financial loss resulting from a negligent misstatement if there is a special relationship between the parties. 

• Assumption of Responsibility: Liability arises when the defendant assumes responsibility for the claimant's reliance on their advice or information.