Hedley Byrne & Co Ltd vs. Heller & Partners Ltd || Case Summary ||[1964] AC 465 (UK) || Duty of Care

Duty of Care

FACTS

In Hedley Byrne & Co Ltd vs. Heller & Partners Lt, Hedley Byrne, an advertising firm, relied on a financial reference from Heller & Partners, a bank, which turned out to be misleading. Hedley Byrne suffered financial loss and sued for negligent misstatement.

ISSUES

Can a party be held liable for economic loss caused by negligent misstatements made without a contract?

RELEVANT LEGAL PROVISIONS

Tort Law: Principles on negligence and economic loss.

JUDGEMENT

The House of Lords recognized that a duty of care can exist in making statements, even in the absence of a contract.

KEY PRINCIPLES

1. A special relationship between the parties can create a duty of care.

2. Disclaimers can limit or exclude liability.

IMPACT OF THE JUDGEMENT

Introduced the concept of negligent misstatement into English tort law.

Influenced commercial and professional liability standards.

CONCLUSION

Hedley Byrne extended negligence beyond physical harm to pure economic loss, revolutionizing the law on professional advice and financial liability.

Vinita Pathak